Pennsylvania Public School Employees’ Retirement System, Harrisburg, approved hiring NISA Investment Advisors to run up to $2 billion in a core fixed-income portfolio, as well as commitments totaling $665 million.
The $79.5 billion pension fund’s board at its March 21 meeting approved the hiring of NISA Investment Advisors to manage an initial $500 million in its Core Broad Market Fixed Income strategy, with a total of up to an additional $1.5 billion to be allocated at the discretion of investment staff, according to a resolution on the pension fund’s website.
The pension fund hired NISA because it is underweight core fixed income, according to a presentation on its website. The funding source was not provided. The actual allocation to the asset class as of Dec. 31 was 4.7%, and its long-term target is 8%.
Also at the March 21 meeting, the board approved commitments of $200 million and $150 million to infrastructure fund I Squared Global Infrastructure Fund IV and infrastructure debt fund I Squared Infrastructure Credit Fund II, respectively, both managed by I Squared Capital; a total of $133 million to Stellex Capital Partners III, a middle-market distressed and special opportunities fund, and a related co-investment sidecar vehicle; $100 million to K6 Private Investors, a buyout fund managed by K1 Investment Management; and €75 million ($82 million) to Realterm Europe Logistics Fund II, a value-added real estate fund.
As of Dec. 31, the actual allocations to private equity, private real assets and private fixed income were 14.9%, 11.5% and 7.9%, respectively.
