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
Kim Gubler says it is time that schemes and administrators reassess SLAs and look at what real people need from their pension schemes and when
The Pensions Regulator (TPR) is focusing on reducing the number of "poorly-run" schemes as it seeks to improve standards across the board.
Prudential Retirement has completed around $2.6bn (£2bn) of reinsurance contracts for UK pension scheme longevity risk since the start of the year, it has disclosed.
Funding standards for DB schemes have increased exponentially over the past decades. Con Keating says such significant overstatement of liabilities will lead to pushback through the courts.