Pennsylvania Municipal Retirement System, Harrisburg, is searching for an active domestic large-cap value equity manager to run about $50 million and an active domestic small-cap growth equity manager to run about $30 million for the $1.2 billion pension fund, said James Allen, secretary of the municipal retirement board.
The large-cap manager will replace Boston Co. Asset Management, which plan officials terminated from a $100 million active domestic large-cap value portfolio for performance. The balance of that portfolio went to LSV Asset Management, the fund's other large-cap value manager. The fund put $40 million of the money for the new portfolio in S&P 500 and Lehman Aggregate index funds managed by State Street Global Advisors, and the balance with active international large-cap growth manager Mercator Asset Management.
Ron Gruendl, spokesman for Boston Co.'s parent, Mellon Financial, declined to comment.
Funding for the small-cap growth portfolio will come from splitting the portfolio of existing active domestic small-cap growth manager Emerald Asset Management in half. Mr. Allen said officials want to spread the risk because it's a volatile asset class.
The RFPs are available on consultant Dahab Associates' website at www.dahab.com. The deadline for proposals on the large-cap RFP is May 16, and the deadline for the small-cap RFP is May 20. Plan officials will hear final presentations at the board's regular meeting July 21, and Mr. Allen said he anticipates the board will make selections at the July meeting.