Tacoma (Wash.) Employees' Retirement System hired BlackRock to run $85 million in its enhanced high-yield strategy and Insight Investment to run $15 million in its domestic high-yield beta strategy.
The $2 billion pension fund's board approved the hirings at its Nov. 9 meeting, said Tim Atwill, chief investment officer.
Funding comes from the termination of Neuberger Berman's $100 million high-yield portfolio due to a "prolonged period of underperformance," said Atwill. Neuberger Berman spokesman Alexander Samuelson declined to comment.
As of Sept. 30, the pension fund's actual allocation to fixed income was 39.6%; the target is 39.5%.
Investment consultant Wilshire Advisors assisted.