Maine Retirement System, Augusta, hired State Street Global Advisors to manage $2.2 billion in indexed equity and fixed income, said Claude Perrier, executive director of the $4.5 billion fund.
State Street replaces PanAgora Asset Management. Mr. Perrier said Maine switched because fund officials wanted a larger manager with more fund selections. ``PanAgora is an excellent firm, but we simply outgrew them,'' he said.
State Street will manage funds benchmarked to the Wilshire 5000, Shearson Lehman Aggregate Bond, and S&P 500 Value Equity and Growth Equity indexes.
The Maine fund might rebalance its indexed investments later this month to shift assets from equity to fixed income, depending on equity returns, Mr. Perrier said.
Ennis Knupp assisted. No other searches are planned.
Municipal Employees' Annuity and Benefit Fund of Chicago invested $40 million in Capital Associates' new apartment fund and committed $20 million to Mesirow Financial's Venture Seven Fund.
In addition, the $4 billion fund hired Ernst & Co. and Frank Russell for a one-year commission recapture program. A total of 20% of the fund's trades will be directed to the two firms.