Massachusetts Pension Reserves Investment Management Board, Boston, hired Goldman Sachs Asset Management, INTECH and PIMCO to run about $1 billion each in enhanced large-cap domestic equity index portfolios. The funding will come from reducing a $6.6 billion S&P 500 index fund run by State Street Global Advisors.
At its meeting today, the board of the $39.3 billion fund also hired Lazard Asset Management and T. Rowe Price to manage $244 million each in active emerging market equities. Most of the funding for the portfolios came from the October 2004 termination of Capital Guardian Trust, which ran $393 million in active emerging markets equities, because of performance. The remainder came from trimming portfolios from emerging markets equities managers Grantham Mayo van Otterloo and Emerging Markets Management, leaving each with $976 million. The assets had been parked in an emerging markets index fund run by SSgA.
In addition, the board voted to invest up to 75 million euros ($88.4 million) in Nordic Capital VI, a 1.9 billion euro growth-oriented middle-market buyout fund. It also voted to rehire Goldman Sachs as its provider of securities lending services for another two years, through the end of 2007.
Separately, the fund will look for a firm to provide transition management services. The board's current transition management provider, SSgA, had been used on an ad-hoc basis, said Michael Travaglini, executive director. SSgA can rebid.