Indiana Public Employees Retirement Fund, Indianapolis, plans to allocate a total of $1.3 billion in active domestic small-cap, midcap and "smid small-cap and midcap growth and value equities, said Patricia J. Gerrick, chief investment officer for the $10 billion plan. "We havent decided how it will be implemented, Ms. Gerrick said. "I dont know how many managers we will hire. It probably wont be more than five. The system will not seek core managers, she noted.
The system plans to allocate 8% of total assets to active small-cap equities and 5% to active midcap equities. Funding could come from a combination of small-cap passive portfolios managed by Dimensional Fund Advisors, which runs $500 million, and J.P. Morgan, which runs $200 million. Funding also might come from fixed income, which is overweighted at a 44% allocation from the funds target of 38%. The fund has 10 fixed-income managers. No further decisions have been made about the reallocation.
William M. Mercer is consultant.