Fresno County (Calif.) Employees' Retirement Association hired PGIM Fixed Income to run up to $372 million in a liquid multisector credit portfolio.
The $6.2 billion pension fund's board approved the hiring at its March 2 meeting, recently released meeting minutes show. Other finalists for the liquid multisector credit portfolio were Loomis Sayles and Pacific Investment Management.
The pension fund conducted a shortlist search based on investment consultant Verus Advisory's recommendation to restructure the pension fund's 10% target to credit to allow managers to "allocate dynamically across credit asset classes and capitalize on different market conditions," according to a presentation included with Feb. 2 board meeting materials.
The new structure consists of a 6% target to liquid multisector credit and 4% to semiliquid multisector credit.
Previously, the credit target consisted of 4% each bank loans and high yield and 2% emerging markets debt. Current managers for those asset classes are Eaton Vance, Loomis Sayles and PIMCO, respectively. As of Sept. 30, their portfolio sizes were a respective $201 million, $195 million and $190 million.
"We cannot yet say whether any managers will be terminated," Douglas Kidd, the pension fund's investment officer, said in a Feb. 3 email. "We appreciate the ongoing commitment to FCERA from each of our existing managers in fixed income."
The finalists for a shortlist search for semiliquid credit managers to run up to $248 million are GoldenTree Asset Management, HPS Investment Partners and KKR. Their presentations were scheduled for the pension fund's board meeting Wednesday.
Mr. Kidd could not be immediately reached for further information.
