Denver Public Schools Retirement System will search for an active domestic small-cap to midcap equity manager in three to six months, said David A. Stella, executive director. The amount of the portfolio has not been determined; it will be all or part of a $60 million temporary S&P 400 index fund run by Deutsche Asset Management, he said. Officials for the $2.2 billion pension plan have not decided on a management style, and details will not be determined for at least three to six months, he said. Hewitt Associates will advise.
Separately, the system will increase its domestic and international equity allocations by two percentage points each in the next three to six months, said Mr. Stella. The new targets will be 32% and 17%, respectively. The money will come from fixed income, which will be cut by four percentage points to 36% of assets. The plan’s other targets are 10% real estate and 5% alternative investments. Plan officials have not decided if current equity portfolios will be increased or if additional international and domestic equity managers will be sought, he said. The move is the result of an asset-liability study conducted by Callan Associates, he said.
