Philadelphia Public Employees Retirement System plans to search this summer for an active domestic large-cap growth equity manager to run between $40 million and $60 million, said Tony Johnson, chief investment officer of the $4.5 billion system. The search is part of a restructuring based on an asset allocation study that was completed in December. For now, the money is parked in a Russell 1000 Growth index fund.
Separately, the system hired Wellington Management and Chicago Equity Partners to run $40 million each in active domestic midcap core equities, Mr. Johnson said. The system also interviewed six finalists in its search for three domestic active midcap value equity managers to run $40 million to $60 million each. The finalists are: Ariel Capital; Boston Co. Asset; Cooke & Bieler; Hotchkis & Wiley; Lord Abbett; and TCW. Winners will be named next month.
Funding for the midcap hirings came from decreasing fixed-income and international equities; Mr. Johnson declined to say which managers portfolios had been reduced. The assets had been invested temporarily in a Deutsche Asset S&P 400 index fund.