The Pennsylvania Municipal Retirement System, Harrisburg, selected finalists in searches for an active domestic large-cap value equity manager to run $50 million and an active domestic small-cap growth equity manager to handle $30 million, said James Allen, secretary of the municipal retirement board. The finalists in the $1.2 billion pension fund's large-cap search are Eagle Capital Management, DePrince Race & Zollo and C.S. McKee; the finalists in the small-cap search are Renaissance Investment Management, Independence Investment and Century Capital Management.
Funding for the large-cap portfolio will come from taking $40 million parked in S&P 500 and Lehman Aggregate index funds managed by State Street Global Advisors and trimming $10 million from active international large-cap growth manager Mercator's $90 million portfolio.
Funding for the small-cap growth portfolio will come from cutting the portfolio of existing active domestic small-cap growth manager Emerald Asset Management to $30 million. Mr. Allen previously said officials want to spread the risk because it's a volatile asset class.
Finalists will make presentations at the board's regular meeting July 21, when the board will likely make selections, Mr. Allen said.
Dahab Associates is assisting.