Pennsylvania State Employees picks 4 for emerging markets equities, U.S. bonds
By Rob Kozlowski | December 6, 2012 4:00 pm
Pennsylvania State Employees' Retirement System, Harrisburg, hired active emerging markets equities managers Delaware Investment Advisers to manage $250 million and Ashmore Investment Management to run $125 million, confirmed spokeswoman Pamela Hile.
The hires are the $25 billion pension fund's first in active emerging markets within its global equity program.
Funding will come from reducing the portfolios of passive emerging markets equity managers Mellon Capital Management and Vanguard Group. There will be a “substantial balance” remaining with both managers, wrote PennSERS spokeswoman Heather Tyler in an e-mail, without elaborating further.
Separately, the pension fund hired PNC Capital Advisors to handle $200 million and Stoneridge Investment Partners to manage $100 million, both in active domestic short-term fixed income. Emerald Fixed Income Advisors was the other finalist in an invitation-only search. Funding comes from cash.
The fund also made a follow-on commitment of up to $15 million to Incline Equity Partners.
Also, Great-West Retirement Services was rehired as third-party administrator of the retirement system's $2.3 billion 457 plan.
An RFP was issued in October; Great-West's current contract expires June 30, 2013. A new four-year contract with a one-year renewal option will begin next July 1.
Prudential Retirement was the other finalist.