The Pennsylvania State Treasury, Harrisburg, committed $300 million to a new revenue-weighted S&P 500 index fund run by Valley Forge Trust, said Vincent Lowry, the treasury's consultant at VTL Associates and creator of the revenue-weighted index. The new index bases the weighting of each security in the S&P 500 on the trailing 12-month revenue of the underlying company, said Mr. Lowry. The general account money came from a passive investment managed by State Street Global Advisors.
"Right now the Pennsylvania State Treasury has $300 million in a passive S&P 500 index account and $300 million in the revenue weighted index. It's going to wait and see which one does better," said Mr. Lowry.
The treasury is responsible for $10 billion in assets.