Rhode Island State Investment Commission, Providence, hired Russell Investments to manage about $508 million in passive long-duration U.S. Treasuries, terminated Western Asset Management Co. from a similar active portfolio, and committed up to $40 million to core infrastructure fund Meridiam Infrastructure North America IV for the $11.5 billion Rhode Island Employees’ Retirement System.
The commission approved the actions at its Oct. 23 meeting, recently released meeting minutes showed.
According to the minutes, the commission decided to switch to a passive from active strategy for its Treasuries portfolio, also citing Western Asset’s recent organizational challenges in its decision to make the change.
Rhode Island’s investment commission is the latest entity to terminate WAMCO in the past several months. Ken Leech, former co-CIO of WAMCO, is facing federal charges that he steered more than $600 million in gains to favored clients while forcing losses on others. He has pleaded not guilty.
Separately, the commission’s approval of the commitment to Meridiam is its first to the manager.
As of Oct. 31, the pension fund's actual allocations to Treasuries duration and private real assets (ex-real estate) were 4.4% and 4.1%, respectively; their respective targets are 5% and 4%.
Investment consultant NEPC assisted.
