Massachusetts Pension Reserves Investment Management Board, Boston, will issue RFPs for two domestic small-cap equity managers, one active and one passive, to run $700 million each, said Mike Travaglini, executive director. The active manager will replace Putnam, which ran $700 million in a similar portfolio before it was terminated last fall because of market-timing allegations against the firm, Mr. Travaglini said. Money for the passive fund will come from a similar style portfolio run by State Street Global Advisors. Mr. Travaglini said the $29 billion pension fund is not unhappy with SSgA; it "just wanted to test the market as long as we were doing a search for an active small-cap manager," and SSgA can rebid. Further details could not be learned by press time.
Separately, MassPRIM hired active EAFE equity managers Boston Co. Asset Management and Baillie Gifford to run $600 million each. Partial funding comes from a $900 million active EAFE equity portfolio run by Putnam before it was terminated in the fall; the remainder will come from reducing Capital Guardian's similar style portfolio, leaving it with $600 million. Mr. Travaglini said the fund "just wanted to get our overall portfolio in line. It leaves each of the managers with an equal amount of assets."