The $3.8bn Michigan Municipal Employees' Retirement System, Lansing, has confirmed its foray into small cap growth investing and hopes to appoint an investment manager for this brief in October.
The fund also confirmed it is looking to appoint a private equity manager next year.
The announcements follow the hiring of Reams Asset Management to run a $188m high-yield securities mandate, the first dedicated high yield position for Lansing. Investments director Jeb Burns explained that the fund decided to invest in high yield securities after an asset allocation study, which revealed that a diversified portfolio range would enable the fund to take advantage of all asset classes.
The fund’s high-yield portfolio was formed by a reduction in core bonds from 31.2% to 27% ($1.2bn to $1bn) and a reduction in a TCW portfolio of convertible bonds from 6% to 5% ($236m to $190.5m). This reduced the allocation to 5% of total assets from 6.2%.
By Janet Du Chenne
The Next Generation Pensions Committee is on a mission to promote and encourage younger voices in the industry. Kim Kaveh looks at its key objectives
This week's top stories included an analysis finding the cost of equalising guaranteed minimum pensions in schemes could hit FTSE 100 profits by up to £15bn.
Employers whose dividend to deficit recovery contribution (DRCs) ratios fall outside the "normal range" should expect to see higher regulatory scrutiny, although no fixed ratio will be set.
Investment consultants and fiduciary managers should expect a final decision on the investigation into the market to be published by the end of the year, the competition watchdog says.