The $1.18 billion Educational Employees' Supplementary Retirement System of Fairfax County, Va., is terminating INVESCO, a domestic large-cap stock manager, using the proceeds to add to its bond portfolio, and searching for an international stock manager, Treasurer Deidra McLaughlin said.
Ms. McLaughlin said INVESCO ``has a very strong performance,'' but the fund decided to terminate it rather than fund the other allocations by taking ``bits and pieces from different managers.''
Of the $110 million INVESCO had managed, $26 million will go to an intermediate bond portfolio with Miller Anderson & Sherrerd, which already runs $115 million in a balanced portfolio; $26 million will go into intermediate bonds with PIMCO, which already runs $108 million in bonds; and $25 million goes to long bonds with Loomis Sayles, which now runs $44 million in bonds. The balance will be given to the new international manager. Mercer will assist in that search. In the interim, that money will be placed in an MSCI EAFE index account with Mellon Bank, the system's custodian.
The changes are intended to bring the system closer to its recently adopted asset allocation of 52% domestic stocks, 10% international stocks, 26% bonds, 7% real estate, 2% international bonds and 3% cash
