Search activity for the second quarter of 2020 decreased 50.6% from the prior quarter and decreased 37.7% from the second quarter of 2019. Service provider and traditional manager searches decreased 54.83% and 45.45% from the prior quarter, respectively. Notable activity for the quarter included Fonds de Reserve pour les Retraites’s $6 billion search for active fixed-income strategies. Northern LGPS issued searches for U.K. real estate managers to run $2.5 billion and consultants. Connecticut Retirement Plans & Trust Funds issued a $1.8 billion search for its global equity and global fixed-income strategies.
Hiring activity increased 3.1% from the previous quarter to $48.06 billion. The number of hires increased 20.4% for the quarter and decreased slightly 0.1% from the same period a year ago. Neuberger Berman won six mandates, totaling $2.1 billion, which included a hire by Florida Prepaid College Board for its $2 billion liability-driven investment strategies. Income Research & Management received a $2 billion mandate from Florida Prepaid College Board for its liability-driven strategies as well. Blackstone won $1.6 billion worth of four mandates and was hired by CalPERS for a $1 billion private equity buyout strategy. Alternatives hires increased 9.5% and traditional hires decreased 49.21% from the prior quarter. Defined contribution hires increased to 157 from 22 of the previous quarter, and the top three managers hired were Fidelity Investments, State Street Global Advisors and BlackRock. The uptick in DC hires is attributed to the release of 11-K filings during the quarter, with 54% hires for equity and 15% hires for fixed-income strategies.
