Indiana Public Retirement System, Indianapolis, committed $572 million to three investment strategies from the system's $32.2 billion defined benefit plan, according to meeting materials from a virtual board meeting held Friday.
INPRS staff committed $80 million to existing credit manager Oak Hill Advisors for investment in OHA Structured Products Fund II. The fund's managers are to invest opportunistically in collateralized loan obligation debt and equity tranches in the U.S. and Europe, primarily in the secondary market.
New credit manager 400 Capital Management also was awarded an $80 million commitment for investment in 400 Capital Asset Based Term Fund II. Portfolio managers of the fund are to seek credit opportunities in the U.S. and Europe with a focus on residential and commercial real estate debt, consumer finance and specialty finance markets, the board report showed.
After a search, INPRS' investment officers hired new manager Parametric Portfolio Associates to run a $412 million cash rebalancing overlay. Parametric replaces Russell Investments as manager. A reason for the manager change was not provided in board meeting materials.
INPRS' board also approved the retention of BNY Mellon to provide master custody services. BNY Mellon was first appointed in 2011, said Dimitri Kyser, an INPRS spokesman, in an email, noting that the bank's current contract expires June 30.
Mr. Kyser said the board decided to rebid the master custody contract because "it was a good time to perform another test of the market fees and capabilities" given that BNY Mellon's contract was approaching its 10th year.
The new contract is for five years beginning July 1, with the option to renew the contract for an additional five years, Mr. Kyser said.
INPRS managed a total of $38.6 billion as of Sept 30. In addition to the $32.2 billion defined benefit plan, INPRS staff also oversee management of $5.9 billion of defined contribution plan assets with the balance in other public funds.