Minnesota State Board of Investment, St. Paul, hired four managers to run active emerging-markets portfolios of about $100 million each. Alliance Capital, Capital International, Morgan Stanley Dean Witter and Schroder Investment Management replace emerging markets managers City of London, which managed $30 million, and Genesis Asset Management, $150 million. Additional funding comes from cash.
The $44 billion pension fund terminated City of London for administrative reasons, according to minutes of a Dec. 13 board meeting. Genesis was terminated because of performance, "due in large part to their decision not to invest in several emerging-market countries which ended up having very strong performance,” said Howard Bicker, executive director, according to the minutes. Jeremy Paulsen-Ellis, Genesis client contact, did not return calls requesting comment by deadline.
The board will review contracts with the 17 of the existing domestic and international stock and bond managers whose contracts expire June 30. The stock and bond manager committee recommended that all the contracts be renewed.
