Mass Pension Chooses Four Managers for $1.8B Credit Program

The Massachusetts Pension Reserves Investment Management Board (MassPRIM), which manages $104 billion in assets, chose four managers for its multi-asset class credit program earlier this month.

Multi-asset credit is part of PRIM’s Value-Added Fixed Income (VAFI) portfolio. According to the system, VAFI will include high yield bonds, bank loans, emerging market debt, multi-asset credit, alternative credit options, and private debt.

Anchorage Capital Advisors received an initial $300 million commitment for a strategy that uses an active long-only performance credit strategy with the flexibility to invest in a variety of credit vehicles, including high-yield bonds, investment grade bonds, bank loans, and structured credit such as CLOs.

HPS Investment Partners will receive a $600 million allocation to manage a portfolio including exposure to leveraged loans, high yield and investment grade bonds, and securitized assets, with a strong emphasis on performing credit, according to officials.

KKR Credit will handle $500 million through its platform, which it established in 2004 to explore credit investments. The diversified credit strategy invests in bank loans, high yield bonds, structured credit, and convertible bonds. The portfolio will include 400 to 500 issuers.

Shenkman Capital Management has secured a $400 million commitment. The strategy focuses on high-yield and leveraged financial markets. The team makes dynamic tactical allocations across non-investment grade credit.