PennSERS commits $250 million to 3 private equity funds

Pennsylvania State Employees' Retirement System, Harrisburg, approved a total of $250 million in new commitments, confirmed Pamela Hile, spokeswoman for the $27.5 billion pension system.

At its meeting on Wednesday, the board approved two commitments totaling $100 million to private equity funds managed by Asia Alternatives Management — a commitment of up to $50 million to Asia Alternatives Capital Partners V, a private equity fund of funds, and up to $50 million to Penn Asia Investors, which focuses on opportunistic investments in Asia-based private equity funds.The board also approved a commitment of up to $150 million to Glendon Opportunities Fund II, a distressed debt fund managed by Glendon Capital Management.

The commitments will be funded by cash, subject to successful contract negotiations.

Also at its meeting, the board hired Invesco (IVZ) Advisors as the stable value fund program manager, subject to a contract agreement.

The board also approved reallocating a little more than $1 billion over time. Roughly $249 million from fixed income and $400 million of cash will be moved to the Mellon Capital Management Russell 3000 index fund and about $358 million within the fixed-income portfolio to the core bond portfolio run by Pacific Investment Management Co.