Nebraska Investment Council, Lincoln, committed $50 million to venture capital fund New Enterprise Associates 18 at its most recent board meeting, Michael Walden-Newman, state investment officer, said in an email.
The council, which oversees $38.1 billion, made the commitment on behalf of its five defined benefit plans, which have a total of $16.5 billion in assets, and its cash balance benefit plans totaling $2.9 billion, according to board documents from its Dec. 9 meeting.
The council also approved new fixed-income allocations for the defined benefit and cash balance plans, the $1.6 billion Omaha School Employees Retirement System and the $1.1 billion general endowments.
Following the recommendation of council staff, in coordination with its investment consultant Aon Investments USA, the council approved separating the target allocations to fixed income into risk-reducing fixed income and return-seeking fixed income for reporting and benchmarking purposes. The move allows for better risk control and more accurate benchmarking, council staff said in its recommendation.
To implement the new allocations, the council approved terminating managers Neuberger Berman, Wellington Management and Franklin Templeton, as well as one of Loomis Sayles & Co.’s strategies, Mr. Walden-Newman said in an email. In the fixed-income portfolio for the defined benefit, cash balance and OSERS plans, Neuberger Berman managed $762 million and Wellington managed $568 million. Franklin Templmenton managed $408 million and Loomis Sayles managed $401 million in bank loan portfolios.
For the defined benefit, cash balance and OSERS plans, 30% of the respective portfolios are to be allocated to fixed income: 5% to BlackRock (passive), which was previously 3.9% ; 5% to Pacific Investment Management Co. (core-plus), previously 4.8%; 5% to BlackRock (core-plus), previously 3.7%; 5% to Baird Asset Management (core-plus), new to the portfolio; 3.4% to Loomis Sayles (multisector), previously 1.6%; 3.3% to PIMCO (multiasset credit), new to the portfolio, and 3.3% to Barings (multiasset credit), new to the portfolio. Of the 30% allocated to fixed income, 20% is designated as risk-reducing while 10% is return-seeking.
The council approved Baird to replace Neuberger Berman as a core-plus manager while Barings and PIMCO are new multiasset strategy managers, Mr. Walden-Newman said in an email.
The general endowments will allocate 50% of its portfolio to fixed income: 15% to BlackRock (passive), previously 22.4%; 10% to PIMCO (core-plus), previously 10.8%; 10% to Baird (core-plus), new to the portfolio; 7.5% to Loomis Sayles (multisector), previously 3%; and 7.5% to PIMCO (multiasset credit), new. Of the 50% allocated to fixed income, 35% is designated as risk-reducing while 15% is return-seeking.