El Paso (Texas) Employees Retirement Trust hired BlackRock and Wellington Management to run $45 million each in active domestic core-plus fixed-income portfolios.
The $825 million pension fund's board approved the hirings, pending contract negotiations, at its July 15 meeting, a webcast of the meeting shows.
The pension fund conducted a shortlist search as part of a review of its overall fixed-income structure. The pension fund is conducting structure reviews as a result of its asset-liability study in 2019, Executive Director Robert B. Ash said at the meeting.
Other finalists were MetLife Investment Management and PGIM Fixed Income.
Funding comes from the earlier termination of Franklin Templeton from a $200 million global fixed-income portfolio. According to June 17 board meeting minutes, that portfolio was terminated because it "lacked return, raised the cost of the program and increased volatility."
Half of that portfolio was allocated to an existing passive domestic fixed-income portfolio managed by Mellon Investments. The total of that portfolio could not be immediately learned.
Also at the July 15 board meeting, the board approved the termination of Janus Henderson Investors from its active domestic core-plus fixed-income portfolio due to personnel changes and performance concerns. The size of that portfolio was not available.
Investment consultant Callan assisted.
Mr. Ash could not be immediately reached for further information. Stacey Coleman, spokeswoman at Franklin Templeton, and officials at Janus Henderson could not be immediately reached for comment.
