COLUMBUS – The Ohio Bureau of Workers’ Compensation (BWC) Board of Directors today approved the selection of six active managers to manage a portion of the State Insurance Fund (SIF) investment portfolio allocated towards the long duration credit fixed income mandate. The managers selected following a Request for Proposal (RFP) search and evaluation process are Prudential Fixed Income; PIMCO; Conning; Legal and General Investment Management America; Western Asset Management; and Barrow, Hanley, Mewhinney & Strauss.
“We expect the introduction of active management in this portion of our portfolio will help control risk and achieve higher investment returns,” said BWC Administrator/CEO Steve Buehrer. “BWC’s investment staff and consultant have conducted rigorous and thorough due diligence in reviewing bids and selecting well-qualified finalists.”
The board modified BWC’s Investment Policy Statement (IPS) last year to allow for active manager diversification. The IPS allows for a targeted 20% of total SIF investment assets to be allocated to active management of long duration credit fixed income assets. As a result, approximately an initial $4.5 billion will be under active management with these firms. The remaining 8% of SIF assets targeted toward this asset class mandate will remain under the passive indexed style of management.
The Request for Proposal was finalized with assistance from BWC’s investment consultant R.V. Kuhns. An RFP evaluation committee consisting of senior investment staff and R.V. Kuhns consultants completed a review and assessment of bid proposals.
Source: Ohio BWC