Indiana Public Employees Retirement Fund, Indianapolis, added $2.2 billion to an active Russell 1000 alpha tilt fund run by Barclays Global Investors, raising it to $2.8 billion, said Jeff Hutson, director of communications for the $14.6 billion pension fund. Funding came from closing a $2.3 billion Russell 1000 index fund, also run by BGI; the remaining $100 million was split evenly between active global equity portfolios run by INVESCO and Capital Guardian, raising them to $454 million and $487 million, respectively.
The BGI alpha tilt fund returned an average annualized 12.8% for the three years ended June 30, net of fees, which was 1.6 percentage points higher than the BGI Russell 1000 return, according to an August memo to the fund's board by CIO Shawn D. Wischmeier and a performance report. "This higher expected return translates to $25 million in increased revenue to the portfolio each year," he wrote.
