Minnesota State Board of Investment, St. Paul, on Wednesday committed $1.6 billion to international equities, hiring five managers.
Acadian Asset Management, Fidelity Investments, JPMorgan Asset Management and McKinley Capital Management will run $250 million each in active EAFE developed markets equities. The $42 billion board is funding the hirings from cash and the terminations of T. Rowe Price International and Britannic Asset Management International, which managed $300 million each in active international developed markets equities. Howard J. Bicker, executive director, said the terminations were due to personnel and performance. Steve Norwitz, a T. Rowe Price spokesman, declined comment. Jean Birrell, a Britannic spokeswoman, was unable to provide comment by press time.
AQR Capital Management, Fidelity and State Street Global Advisors will manage $200 million each in international developed markets enhanced indexed equities. Funding will come from reducing an MSCI EAFE index fund run by SSgA to about $2 billion, Mr. Bicker said.
Separately, Transamerica Investment Management, which ran $100 million in active domestic large-cap growth equities, was terminated because its management team left the firm, Mr. Bicker said. Four equity portfolio managers moved to Delaware Investments from Transamerica earlier this year. The assets will be distributed among the plan's nine other active large-cap growth managers. Elizabeth Grice, a Transamerica spokeswoman, declined to comment.
The board will invest $100 million each in a Lehman Brothers real estate fund and a Warburg Pincus private equity fund, and $75 million in a Windjammer Partners mezzanine debt fund.
Plan custodian State Street Bank's contract also was changed to include transition management services to be used as necessary, Mr. Bicker said.