Fairfax County Educational Employees' Supplementary Retirement System, Springfield, Va., hired J.P. Morgan Asset Management to run about $187 million in active domestic core fixed income.
The $3.1 billion pension fund’s board approved the hiring at its April 26 meeting, recently released meeting minutes show.
The pension fund had conducted a search for an additional manager to complement three existing fixed-income managers to provide further diversification in the asset class.
Under the new structure, each of the four managers will run 25% each of the domestic fixed income portfolio, according to the materials. The existing managers Loomis Sayles & Co., Fidelity Institutional Asset Management and DoubleLine Capital currently run $293 million, $223 million and $207 million, respectively. Those portfolios will each be reduced to about $187 million, with any further funding coming from other rebalancing.
As of April 30, the actual allocation to domestic fixed income was 23.2%; the target is 24%.
Investment consultant Segal Marco Advisors assisted.
