The $2.5 billion Chicago Policemen's Annuity & Benefit Fund hired four managers to split management of up to $400 million in U.S. fixed-income strategies at a board meeting Thursday.
Each firm will run $90 million to $100 million, said Thomas Beyna, a Chicago policeman who is president of the fund's board and chairman of the investment committee, in an email.
EARNEST Partners and Garcia Hamilton & Associates were hired to split management of CPABF's core-bond portfolio, which was increased to as much as $200 million from $96 million. Wells Capital Management previously managed the entire core bond allocation.
National Investment Services was retained to manage half of the fund's approximately $200 million core-plus bond fund. It replaced LM Capital Group as co-manager; LM managed $92 million prior to the change.
Wellington Management will remain manager for the remainder of the core-plus portfolio. Wellington managed $99 million prior to the search.
Consultant NEPC assisted with the searches.
In April, Mr. Beyna said in an email that the fund was issuing the RFPs "to explore the universe of managers and ... to analyze the asset class in the current market environment."