Massachusetts Pension Reserves Investment Management Board, Boston, hired active EAFE equity managers Boston Co. Asset Management and Baillie Gifford to run $600 million each, said Mike Travaglini, executive director. Partial funding comes from Putnam's $900 million active EAFE equity portfolio; Putnam was terminated in the fall because of market-timing allegations against the firm, he said. The remaining $300 million will come from reducing Capital Guardian's similar style portfolio, leaving it with $600 million. Mr. Travaglini said the $29 billion pension fund "just wanted to get our overall portfolio in line. It leaves each of the managers with an equal amount of assets."
Separately, MassPRIM will search for two domestic small-cap equity managers, one active and one passive, to run $700 million each, Mr. Travaglini said. The active manager will replace Putnam, which ran $700 million in a similar portfolio before it was terminated last fall. If the fund hires a passive small-cap manger, funding will come from a similar fund run by State Street Global Advisors. Mr. Travaglini said the pension fund is not unhappy with SSgA but "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.