Pennsylvania State Employees' Retirement System, Harrisburg, in September will interview Ashmore Investment, PIMCO, Greylock Capital and Gramercy Advisors in the $24.8 billion system's search for managers to run two emerging market debt mandates totaling around $500 million.
The system plans to invest a total of 4% of the fund's assets in emerging markets debt. Earlier this year, it gave a $450 million emerging markets debt mandate to Salomon Smith Barney.
Investment staff said Ashmore and PIMCO are being considered for hard currency mandates, while Greylock and Gramercy are being considered for a hedge fund approach, including investments in distressed debt and short selling. Staff recommended splitting the money evenly between both mandates. Rocaton is assisting.
Separately, the system committed up to $50 million each to Providence Equity Partners V and InterWest Partners IX; up to $40 million to OCM Opportunities Fund V; and up to $10 million to UMS Partners Fund I. Cambridge Associates assisted.
