Arizona State Retirement System, Phoenix, is creating a shortlist in its search for two to six managers to run a total of $1.5 billion in active equities benchmarked to the S&P 500 index, said Paul Matson, CIO. The $17.5 billion pension plan will contact the firms by the end of this month, and a selection will be made this fall, he said.
The plan is conducting the search because current managers J.P. Morgan Fleming and Mellon Equity, which run $750 million each in active equities benchmarked to the S&P 500 index, have had marginal performance, he said. Both managers will be asked to rebid, he said. Diane Hallett, Mellon Equity vice president in client service, declined comment, as did an official with J.P. Morgan Fleming, who asked not to be identified.
The plans asset allocation is 51% domestic equity, 33% domestic fixed income and 16% international equity. Mercer Investment Consulting is advising.