Arizona State Retirement System, Phoenix, is issuing RFPs for up to three investment managers to run a total of $1.7 billion in active domestic large-cap core, value or growth equities, said Paul Matson, chief investment officer at the $19 billion system. Funding will come from terminating an $825 million active domestic large-cap core equity portfolio managed by Mellon Equity and a $900 million active domestic large-cap core equity portfolio run by J.P. Morgan Fleming. The search is being conducted due to "marginal performance,” but Mellon and J.P. Morgan Fleming have been asked to rebid, he said. RFPs are available on the plan’s website at www.asrs.state.az.us. The deadline is July 14.
Separately, the system will issue RFPs within the next month for a firm to advise on finding a replacement for LeRoy Gilbertson, who will retire as director of the system in January. Mr. Gilbertson has been director of the plan since 1994. The system’s board will search for the new director with the firm’s assistance, Mr. Matson said; details have not been determined.
The system also hired four active domestic midcap equity managers and created a new internally managed enhanced passive midcap equity portfolio, Mr. Matson said. Forstmann-Leff and Frontier will manage $71 million each in growth; Franklin Associates, $212 million in core; and Wellington, $94 million, core. The internal portfolio is $260 million in value equity, he said. The plan eventually will outsource management of $71 million from the internally managed value equity portfolio, he said. The source of funding was not available by press time.
