The $31.8 billion Michigan Retirement Systems, Lansing, will invest $300 million in international swap agreements in the next 12 months, confirmed Barry Stevens, director-bureau of investments.
The retirement system is resuming the funding of its 5% commitment to international swaps that was put on hold during last year's derivatives witch-hunt. The portfolio stalled at 4% of total assets last year.
Michigan implemented its international swap portfolio in 1993 as a way to get exposure to international equity markets, said Mr. Stevens. The strategy was chosen over a dedicated portfolio strategy because it was cheapest, Mr. Stevens said.