San Francisco City & County Employees' Retirement System terminated Income Research & Management from a $100 million active domestic government fixed-income portfolio.
The $35.2 billion pension fund's board approved the termination at its April 14 meeting, spokesman Stephen Worsfold said in an email.
The board also approved the termination of Baird Advisors from an active domestic core-plus fixed-income portfolio of less than $5 million. The pension fund had already gradually redeemed from the portfolio for liquidity purposes from a peak of $217 million at the beginning of 2020.
The terminations were recommended by the investment staff as part of their ongoing efforts to move the pension fund's liquid credit portfolio to multisector fixed-income managers.
The board in March had approved the hiring of Loomis, Sayles & Co. to run $200 million in its World Credit Asset Strategy, which is focused primarily on bank loans, emerging markets debt, investment-grade credit, high-yield bonds and securitized investments. At the time, the pension fund said funding would come from a combination of investment-grade and non-investment grade liquid credit managers.
As of March 31, the pension fund's actual allocation to fixed income was 7.2%.