Austin City ERS Narrows Down Finalists in Core FI Manager Search

The City of Austin Employees’ Retirement System (ERS) is paring down to three candidates in the selection process of its core fixed income manager search, according to recently published agenda materials related to its December 17, 2024, board meeting. 

Staff and general consultant Meketa recommended Income Research + Management (IR+M), Loomis Core Disciplined Alpha, and Loomis Relative Return as finalists for the active core fixed income mandate. Between the two managers, Austin ERS has previously transacted with Loomis in 2019 through an investment in Loomis Sayles IG Corporate Bond Trust (NHIT), per Dakota data. 

Meketa, who is assisting the Texas-based pension in the manager search, said the new active core fixed income manager is expected to serve as an “anchor” in the pension’s new “hybrid” approach to its fixed income portfolio. The search was first approved in June 2024 after the pension adopted a simplified framework to the asset class, where it moved away from separately managing components within the policy and implemented a bifurcated structure consisting of a main core bond portion and a satellite specialty portion. 

Austin ERS targets a 21% allocation in fixed income out of approximately $3B in current total assets, as of the latest Dakota data. 

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Written By: Dakota