Wichita (Kan.) Retirement Systems hired PGIM Fixed Income to manage about $100 million in active core-plus fixed income.
The retirement systems' joint investment committee approved the hiring at its Nov. 7 meeting, recently released meeting minutes showed.
The systems conducted a search after the investment committee on Sept. 5 voted to terminate Western Asset Management Co. from its portfolio after Western Asset’s parent company, Franklin Templeton, said the SEC had issued a Wells notice to co-CIO Ken Leech, identifying him as a target of an investigation focusing on “past trade allocations involving Treasury derivatives." Leech has since resigned and been charged by the agency for securities fraud.
The systems have parked the assets in a passive fixed-income portfolio managed by State Street Global Advisors since the termination.
The other finalist in the search was Fidelity Institutional Asset Management.
Wichita Retirement Systems comprises the Wichita Employees' Retirement System and Wichita Police & Fire Retirement System, which have a combined $1.6 billion in assets.
Investment consultant Callan assisted.
