Colorado Public Employees Retirement Association, Denver, will conduct a search later this year for at least one global equity manager as part of a shift toward a single global equity allocation, said spokeswoman Katie Kaufmanis. Consultant Ennis Knupp will assist staff in the search; no RFP is expected. The global equity allocation, to be implemented Jan. 1, 2009, will have a custom benchmark: 74% of the DJ Wilshire 5000 index and 26% of the MSCI ACWI ex-U.S. index. The shift will not change the $39 billion plans overall equity exposure; global equity will constitute 58% of total assets. Domestic and international equity constituted 41.5% and 15.3% of total assets as of Feb. 29.
The new manager or managers will receive up to $4.5 billion, or 20% of the global equity allocation. Funding is anticipated to come from other equity managers, but no details are available, Ms. Kaufmanis said. PERAs current external international and domestic equity managers are AllianceBernstein, Turner, Baillie Gifford, BGI, Baring, Mondrian and Schroder. No terminations are planned, Ms. Kaufmanis said.
PERA believes a global equity approach will enhance the risk-adjusted returns in equities over time, Ms. Kaufmanis said in an e-mail. The move to global equities acknowledges the increasingly integrated nature of world markets.