Memphis Light, Gas & Water Division, Memphis, Tenn., hired Loomis Sayles & Co. to run $50 million and Highland Capital Management to run $30 million in active domestic core fixed-income strategies.
The $1.7 billion pension fund's board approved the hirings at its June 21 meeting, recently released meeting minutes show.
The pension fund had launched a search in 2022 for one short-duration core manager to run $35 million, citing a desire to "lock in" higher yields, according to Oct. 26 board meeting minutes. Later, the pension fund's board decided to include current core manager Xponance's portfolio in the search because its "performance in the current strategy" has struggled, the June 21 minutes said.
While the manager was included in the search, the board elected to hire Loomis Sayles and Highland Capital. Partial funding will come from the termination of Xponance's $47 million portfolio, while the remainder of funding will come from reductions of overweight equity portfolios.
An Xponance spokeswoman declined to comment.
Investment consultant CBIZ Investment Advisory Services assisted.
MLGW spokeswoman Stacey Greenberg could not be immediately reached for further information.