South Carolina Budget and Control Board, Columbia, today approved increasing the $25 billion South Carolina Retirement System's equity allocation to 50% from the current 40%, said Michael Sponhour, spokesman. Funding for the shift will come from fixed income, which is being cut to 50% from 60%. A new law permits the pension fund to invest up to 70% of its assets in stocks. The fund's current equity managers will receive additional allocations in proportion to their existing allocations, Mr. Sponhour said.
Separately, the board approved hiring active domestic large-cap equity managers Aronson + Johnson + Ortiz, Pzena Investment Management, WCM Investment Management, Sands Capital Management and Legg Mason Capital Management. Aronson + Johnson will run $500 million in value; Pzena, $347 million in value; WCM, $578 million in growth; Sands, $328 million in growth; and Legg Mason; $346 million in growth. Funding will come from the additional equity allocation and the termination of Montag & Caldwell, which ran $608 million in active domestic large-cap growth equities; the system's investment committee said the portfolio didn't fit with the new asset allocation, according to Mr. Sponhour; further information wasn't available.
Mercer Investment Consulting assisted.