Barclays Global Investors (BGI) has won a $1.5bn Treasury Inflation-Indexed Securities (TIIS) mandate from the $30bn Massachusetts Pension Reserves Investment Management Board (PRIM).
Jerrold Mitchell, the PRIM Board's chief investment officer, said that BGI's inflation-indexed bonds mandate is the Board's first hire in that particular asset class. Funding will come from the core fixed income portfolio. Wilshire Associates assisted.
Additionally, the PRIM board is conducting a search for high yield and timber investment managers.
The PRIM Board is looking to hire one or more managers to invest up to 2% of the fund's total assets in timberland. Initially, the PRIM Board will give up to $600m in funding, with the possibility of increasing that depending upon annual performance reviews. An appointment is expected by September 27.
The other mandate up for tender is an active $600m high yield portfolio, benchmarked to the Credit Suisse First Boston high yield index. That search has now closed, and a final decision is expected by September 27.
The PRIM Board is the body that supervises the Pension Reserves Investment Trust (PRIT) Fund. The PRIT Fund is a pooled investment fund that invests the assets of the Massachusetts State Teachers' and Employees' Retirement Systems, as well as the assets of the county, authority, district, and municipal retirement systems in the state.
By Geoffrey Ho
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