Holyoke (Mass.) Contributory Retirement System hired active equity managers Smith Group Asset Management to run $5.8 million and Fidelity Investments to run $5 million, both in domestic small-cap core, and Lazard Asset Management to run $3 million and OFI Institutional Asset Management to run $2 million, both in emerging markets, according to Daniel R. Owens, executive director of the $160 million plan.
Funding for the small-cap portfolios came from a roughly $11 million Russell 2000 index fund managed by State Street Global Advisors, where the money was parked after Dreyfus Trust - which ran $10.8 million in active domestic small-cap core equities - was terminated earlier this year for organizational reasons, he said.
The emerging markets allocation, the fund's first, is meant to boost returns and increase overall diversification, Mr. Owens said. Funding will come from trimming the plan's $51 million fixed-income portfolio and general redistribution; no managers will be terminated.
RFPs for both mandates were issued earlier this year. Segal Advisors assisted.