Sisters of Mercy Health System, St. Louis, hired Goldman Sachs Asset Management to oversee $710 million in a global TAA approach for its $795 million capital fund, said James Jaacks, CFO. He said GSAM will maintain exposure and remove unintended risk for the programs managers, which run portfolios including Russell 3000, Lehman Government/Credit and MSCI All Country World index (ex-U.S.) funds.
GSAM also will run $77 million of the global TAA program in a Russell 1000 index fund, he said. Funding came from a $44 million active domestic large-cap value equity portfolio that was terminated because the plan wanted a more neutral strategy, and from the reallocation of $33 million in S&P futures. The previous manager, which Mr. Jaacks would not identify, continues to manage a small-cap equity portfolio for the fund as part of the global TAA program.
The fund also hired Frontier to manage $20 million in active domestic small-cap growth equities, also part of the global TAA program, Mr. Jaacks said. Funding came from terminating a $30 million active international equity portfolio; he would identify the manager but said fund officials wanted to reduce international exposure.
Separately, the fund committed $24 million to a hedge fund run by Winston Capital Management and $20 million to a hedge fund run by Ramius Capital Group.
The funds asset allocation is 40% domestic equity, 40% domestic fixed income, 10% international equity and 10% hedge funds.