In keeping its promise to cut management fees and boost earnings, the $621 million Vermont State Employees' Retirement Board, Montpelier, terminated Nicholas-Applegate Capital Management as an active global stock manager and is issuing an RFP for an S&P 500 index manager.
The fund will place half the $70 million Nicholas-Applegate managed in the domestic stock index fund. James H. Douglas, state treasurer, said the board hopes to make a decision within a month on a new manager. The change is expected to save the fund about $250,000 per year, Mr. Douglas said. The remainder of what Nicholas-Applegate managed will be distributed among existing managers.
In addition, the state treasurer will be sending an RFP this week for a study on the options and financial implications of shifting the employees' and the $700 million State Teachers Retirement System to a defined contribution arrangement.