Federal Reserve Employee Benefits System, Newark, N.J., hired Victory Capital Management and Harris Associates to run active balanced portfolios of $300 million each for the $5.8 billion pension plan, said Paul C. Lipson, chief investment officer. Funding came from terminating Miller Anderson, now Morgan Stanley, which ran $600 million in a balanced portfolio with a value equity style, Mr. Lipson said. The termination was due to investment style issues, he said. A Morgan Stanley spokesman could not be reached by press time for comment.
Victory and Harris may allocate 40% to 80% of their portfolios to equities, just as Miller Anderson could, Mr. Lipson said. Victorys equity style tends to large-cap relative value; Harris tends to midcap value, he said.