Vermont's three state pension funds hired Mondrian Investment Partners and Acadian Asset Management to manage active international equity portfolios, according to minutes of board meetings from the $1.34 billion State Teachers' Retirement System, the $1.09 billion State Employees' Retirement System and the $239 million Municipal Employees' Retirement System, all in Montpelier.
Mondrian will run $63.9 million for the state teachers' system, and Acadian will run $42.6 million. Funding will come from terminating a $106.5 million MSCI EAFE index fund managed by State Street Global Advisors. Mondrian already manages $105.7 million in active international value equities for the teachers' fund.
The state employees' board voted to begin contract negotiations with Mondrian and Acadian to replace international equity managers UBS Global Asset Management, which manages $86.7 million for the fund, and Lazard Asset Management, which runs $88.8 million. Specific asset allocations have not been determined.
The municipal employees' system agreed to assign Mondrian and Acadian $19.85 million each, replacing UBS Global, which will be terminated from a $39.7 million international equity portfolio.
David Minot, director of finance and investments for the state, declined to comment on reasons for the manager switches.