New York State Teachers' Retirement System's board voted to authorize Thomas K. Lee, the executive director and chief investment officer, to negotiate a contract with PGIM to manage a portion of the system's fixed-income portfolio.
The initial allocation is up to $150 million. The strategy is a broad high-yield mandate benchmarked to the Bloomberg U.S. High Yield 1% Issuer Capped index, "subject to the satisfactory completion of due diligence," according to a notice posted on the $132 billion Albany-based pension system's website.
The board also approved a series of one-year renewals with various asset managers. The renewals are:
- BlackRock for $6.25 billion as a passive international equity manager, benchmarked to the MSCI ACWI ex-U.S., effective Dec. 12.
- State Street Global Advisors for $6.12 billion as a passive international equity manager, benchmarked to the MSCI ACWI ex-U.S., effective Feb. 18, 2023.
- Harding Loevner for $1.1 billion as an active global equity manager benchmarked to the MSCI ACWI, effective Feb. 27, 2023.
- Loomis Sayles for $1.1 billion as an active global bond manager benchmarked to the Bloomberg Global Aggregate Float Adjusted ex-CNY Bond index, effective Nov. 8.
- AQR Capital Management for $808 million as an active international equity manager benchmarked to the MSCI ACWI ex-U.S., effective Jan. 6, 2023.
- Goldman Sachs Asset Management for $631 million as an active global bond manager benchmarked to the Bloomberg Global Aggregate Float Adjusted ex-CNY Bond index, effective Nov. 12.
- Marathon Asset Management for $397 million as an active international equity manager, benchmarked to the MSCI EAFE index, effective Jan. 24, 2023.
- Nomura Corporate Research & Asset Management for $324 million as an active U.S. high-yield manager benchmarked to the ICE BofAML BB-B U.S. High Yield Constrained index, effective Nov. 27.
- Dimensional Fund Advisors for $176 million, as an active emerging markets manager benchmarked to the MSCI Emerging Markets index, effective Feb. 19, 2023.
