The Minnesota State Board of Investments, St. Paul, is searching for emerging managers. The sizes of the mandates and number of managers have not been determined. The $39 billion defined benefit plan now has $540 million invested with seven emerging managers. The search is being conducted internally.
The board in March approved private equity investments of up to $100 million each in Crescendo IV and the DLJ Strategic Partners. It also committed to a follow-on investment of up to $200 million in Welsh, Carson, Anderson & Stowe IX.
Minnesotas Legislature is considering bills, backed by the board, that would increase the benefit calculation for retirees; mandate that all or a portion of the $500 million to $600 million surplus in the Workers Compensation Assigned Risk Plan be used for other purposes, possibly necessitating the termination of a money manager from the program; remove the board from decision-making responsibilities for the states 403(b) plan; and change the asset allocation for the states tobacco endowment funds to 50% in a passive S&P 500 portfolio and 50% in a Lehman Aggregate Bond index account. Both allocations in the $300 million tobacco fund would be managed internally.