San Francisco City & County Employees' Retirement System hired Loomis Sayles to run up to $400 million in a multisector fixed-income portfolio.
The $35.3 billion pension fund's board approved the hiring at its meeting Thursday, said spokesman Stephen Worsfold in an email.
The Loomis Sayles World Credit Asset Strategy is focused primarily on bank loans, emerging markets debt, investment-grade credit, high-yield bonds and securitized investments, according to a memo to the board included with meeting materials from Alo Martins, SFERS' senior portfolio manager, public markets, and Dennis Esselsagoe, investment analyst, public fixed income.
The pension fund's initial investment will be $200 million, according to the memo. The memo also says that while the pension fund's liquid credit asset class is currently under its 5% target, funding will come from a combination of investment-grade and non-investment grade liquid credit managers.
As of Feb. 28, the actual allocation to liquid credit was 2.5%.
