The $15.8 billion pension fund's board terminated the manager Wednesday after approval of changing the structure of its overall high yield portfolio, said David Graham, pension fund spokesman, in an email.
In 2017, the pension fund reduced the target to high yield to 7% from 15%, and the termination was the result of its efforts to get down to the new target, Mr. Graham said. The termination was not performance-related; the current allocation to high yield is 9.8%.
MacKay Shields still manages $323 million in an active high-yield opportunistic portfolio. The other high-yield managers are Loomis Sayles & Co. and Neuberger Berman, which manage $478 million and $305 million, respectively.
General investment consultant Wilshire Associates assisted.