Tacoma (Wash.) Employees' Retirement System approved hiring Brandywine Global Investment Management and Brown Brothers Harriman to manage active core-plus fixed-income portfolios.
The $2 billion pension fund's board approved the hirings at its May 11 meeting, said Timothy Allen, retirement director and chief investment officer, in an email.
The pension fund conducted an invitation-only search for core-plus fixed-income managers to complement an existing core-plus portfolio managed by TCW Group, which had $250 million in assets in the plan as of March 31.
Mr. Allen said the TCW portfolio has delivered strong performance, and the addition of two managers is being done as a "prudent diversification move."
The portfolios amounts and the timing and source of the funding for the portfolios are pending the results of an ongoing asset-liability study, Mr. Allen said. He said the board hopes to make a final decision on the allocation at its June 8 meeting.
PPM America was the other finalist.
As of March 31, the actual allocation to fixed income was 14%.
Investment consultant Wilshire Advisors assisted.