Missouri Highway & Transportation Employees' & Highway Patrol Retirement System, Jefferson City, selected real estate managers Urdang & Associates and Och-Ziff Capital to run $15 million each, said Larry Krummen, CIO. Urdang will run a value-added account for the $1.3 billion system, and officials are finalizing the contract with Och-Ziff, which will handle an opportunistic portfolio, Mr. Krummen said. Funding will come from rebalancing. Summit Strategies assisted.
Separately, the plan hired Acadian Asset and Julius Baer to run $130 million and $106 million, respectively, in active all-cap international equities, Mr. Krummen said. Partial funding will come from terminating United Missouri Bank, which runs a $172 million active large-cap international equity mandate, because trustees wanted to diversify the plan's international holdings, he said. United Missouri Bank was considered in Summit's shortlist search. Additional funding will come from reducing a Northern Trust S&P 500 index fund, now worth $180 million. Deutsche Asset's transition management group was hired to move the money, he said.
The plan's asset allocation is 40% domestic equity, 30% fixed income, 20% international equity, 5% real estate, 3% timber and 2% cash.