Pennsylvania Public School Employees' Retirement System, Harrisburg, will hire Pareto Investment Management as an active currency hedging overlay manager for $5.2 billion (notional value) in international equities, confirmed spokeswoman Evelyn Tatkovski. Pareto will hedge non-U.S. currencies back to the U.S. dollar for roughly 9% of the fund's total assets, or 30% of the system's international equity currency exposure.
The $57.4 billion system will also hire Goldman Sachs Asset Management, FX Concepts and Mellon Capital Management as active currency overlay managers. Each will oversee $1 billion in assets on a notional basis.
Final contracts are pending negotiation.
The currency program was adopted earlier this month and will be implemented by the end of the year.