Public Employees' Retirement Association of Colorado, Denver, at its Jan. 21 board meeting might hire a manager to handle $1.2 billion in an MSCI EAFE index fund, said Katie Kaufmanis, director of communications. The $31.5 billion system did not issue an RFP; consultant Ennis Knupp assisted the association's staff in manager selection. Ms. Kaufmanis did not name finalists for the mandate. Partial funding will come from the November termination of Bank of Ireland, which ran $495 million in active international equities, said Ms. Kaufmanis; the remainder will come gradually through quarterly rebalancing activity of the overall portfolio.
Trustees at their November meeting directed staff to move at least 25% of the plan's $5 billion active international equity portfolio into a passive strategy and increased the active emerging markets allocation to $325 million, from $200 million. Staff will likely make a recommendation at the Jan. 21 meeting to hire an additional manager to run the additional active emerging markets equities allocation or split it between existing emerging markets managers Schroder Investment Management, Mondrian Investment Partners and Baring Asset Management. Schroder manages $44 million in emerging markets equities, while emerging markets are part of the $640 million in international equities managed by Baring and the $850 million managed by Mondrian, Ms. Kaufmanis said.