Montgomery County Employees’ Retirement System, Rockville, Md., increased its target allocation for international equities to 15% from 13%, said Patrick Bell, director of pension investments. The $1.8 billion system likely will invest all or some of the additional money in a new MSCI EAFE index fund with Barclays Global Investors. Money that doesn’t go into the index fund will be split between the system’s current active international equities managers, Capital Guardian and Lazard Asset Management. Funding for the increase will come from reducing a $200 million S&P 500 index portfolio managed by State Street Global Advisors.
The system also will set up Russell 3000 and Lehman Aggregate bond index portfolios with BGI to park money during rebalancing, but officials haven’t decided on amounts, Mr. Bell said.
Wilshire Associates assisted.
