Florida's State Board of Administration is to hire five bond managers for its new defined contribution pension fund, subject to approval from the fund's trustees.
The five bond managers selected are BlackRock, who will run a US enhanced index mandate; Deutsche Asset Management and Western Asset Management who will run a US core-plus brief; and WR Huff and MacKay Shields who will run active high yield mandates. The amount of each mandate is yet to be finalised.
The five bond managers will be recommended to the fund's trustees and contracts will be negotiated in mid September.
The Florida State Board of Administration, which runs the $102bn (£65.5bn) Florida Retirement System, is currently in the process of creating the new optional defined contribution plan, the Public Employee Optional Retirement Program. The PEORP will be available to Florida’s state employee's from June 1, 2002.
Separately, the FSBA has also committed approximately $200m (£139m) to private equity investments. According to a spokesperson for the FSBA, $100m (£70m) was given to Willis Stein & Partners to invest in buyout funds. The fund has also gave out two $50m (£35m) mandates to Thomas H Lee Equity Partners and Ripplewood Partners to invest in the same asset class.
By Geoffrey Ho
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