Indiana State Teachers' Retirement Fund, Indianapolis, terminated active large-cap managers RCM and GE Asset Management as part of the $6.7 billion plan's restructuring of its domestic equity allocation, said Robert D. Newland, CIO. RCM ran $37 million in growth, and GE Asset handled $36 million in value.
The restructuring shifted $517 million among 12 existing managers, as the fund seeks to tilt more to active management and to smaller-cap from large-cap portfolios and to consolidate managers, he said.
Two S&P 500 index funds were reduced - RhumbLine Advisers was trimmed by $230 million to $330 million and Barclays Global Investors was cut by $191 million to $580 million. RhumbLine was assigned $50 million for a new S&P 600 index fund. Also, BGI's Russell 3000 index fund increased by $182 million to $220 million; PIMCO's enhanced S&P 500 index fund was hiked by $140 million to $493 million; and INTECH's enhanced S&P 500 growth index was raised by $60 million to $100 million.
Holt-Smith & Yates' activedomestic large-cap growth portfolio was raised by $15 million to $55 million. In large-cap value, EARNEST Partners was given an additional $30 million, raising its portfolio to $56 million; while ICAP was increased by $20 million to $51 million; and Pacific Financial was boosted by $20 million; to $56 million.
Ariel Capital Management's$185 million small-cap value portfolio was changed to a $170 million small- and midcap value assignment. Franklin Portfolio's midcap core assignment was reduced $8 million, leaving it with $170 million.
Aeltus, which runs $80 million in small-cap growth, and Brandywine, which runs $70 million in small-cap value, were unaffected by the changes, he said.
Callan assisted in the changes.
