West Asset Management has won a $100m (£69m) high yield bond mandate from the $90bn (£62.4bn) Teachers Retirement System (TRS) of Texas pension fund.
The mandate will be run by West's fixed income arm, Criterion Investment Management. The win brings Criterion's high yield assets under management to over $400m (£277.5m). Criterion use a bottom up fundamental bond selection style, which outperformed the Lehman high yield index by 800 basis points last year.
The firm has also added Michael Willet as a high yield analyst. Willet, who has seven years experience in the industry, previously worked for American General, Koch Capital services and Price Waterhouse.
The TRS, founded in 1937, is one of the worlds largest defined benefit plans. As of August 31, 2000, TRS had 968,000 members - 789,000 are public education employees and 179,000 are annuitants.
By Geoffrey Ho
The top stories this week were the High Court's decision to block the £12bn annuity transfer from Prudential to Rothesay Life, and a separate court ruling that 'raises the bar' for pension rectification exercises.
Guaranteed minimum pension (GMP) equalisation has soared to the top of pension schemes' to-do lists, with 58% stating it is a priority project, research from Equiniti has revealed.
Professional Pensions is holding its defined contribution (DC) conference on 4 September.