Washington Metro Area Transit Authority Salaried Retirement Plan hired State Street Global Advisors to run $100 million in an S&P 500 index fund, and active domestic equity managers Edgar Lomax and Ariel Capital to run $40 million each in large-cap value and small-cap value, respectively. The $400 million pension plan also hired active domestic fixed-income managers PIMCO and Hughes Capital Management to run $80 million and $20 million, respectively, said Ehsan Rahman, CIO and portfolio manager.
The funding for each hire came from paring back existing allocations.
The plan retained existing equity manager Alliance Capital and Oppenheimer Capital, which will handle $40 million in active domestic large-cap growth equities and $80 million in active domestic fixed income, respectively, Mr. Rahman said.
The changes were the result of an asset allocation study; the fund did not use a consultant. It cut its equity exposure to 55% from 60%, and raised its fixed-income allocation to 45% from 35%. (The old allocation contained 5% cash.) The plan’s only equity exposure had been large-cap value and growth.
