Santa Barbara County (Calif.) Employees' Retirement System terminated Mellon Investments from a $48 million passive domestic core fixed-income portfolio.
The $4 billion pension fund's board at its June 23 meeting approved the termination as a result of a core fixed-income structure review, said Rebecca Valdez, investment officer, in an email.
Investment consultant RVK recommended restructuring the pension fund's core fixed-income portfolio to eliminate the passive component in order to improve risk-adjusted performance in a challenging fixed-income environment, according to a presentation from RVK included with meeting materials.
Assets from the termination of the Mellon portfolio will be allocated to existing active domestic core fixed-income manager Garcia Hamilton & Associates, giving it about $366 million in plan assets.
As of May 31, the actual allocation to core fixed income was 15.4%.
