Trustees of the $18.3 billion Alaska Permanent Fund Corp., Juneau, hired one manager, dropped three, increased the assignment of one and reduced the assignments of four others.
Jim Kelly, director-communications, said the moves are part of a new three-year asset allocation plan. It raises the equity allocation to 48% of total assets from 45% and reduces the number of active equity managers to 10 from 13. Trustees hope the moves will increase return while reducing costs. Bankers Trust will run a $304 million S&P 1000 index fund and a $787 million MSCI EAFE index fund.
The fund dropped Alliance Capital Management, which ran a $332 million domestic equity portfolio and a $257 million international equity portfolio; Goldman Sachs, which ran a $254 million domestic equity portfolio; and UBS, which ran a $138 million international equity portfolio. The international equity portfolio of Clay Finlay was raised to $339 million from $215 million. The fund reduced the assignments of Ark Asset, dropping its $516 million international equity portfolio while retaining its $646 million domestic equity portfolio; RCM, cutting its U.S. equity portfolio to $1.1 billion from $1.4 billion; and Chancellor, cutting its $840 million domestic equity portfolio to $790 million.