Arizona State Retirement System, Phoenix, hired Deutsche Asset Management and Mellon Capital Management to run $500 million each in global TAA, pending contract negotiations, confirmed Gary Dokes, CIO of the $28.3 billion system. Funding comes from the 2007 termination of Goldman Sachs Asset Management, which ran $1.4 billion in a similar style portfolio. Of that, $400 million was added to GTAA manager Bridgewaters portfolio, raising it to almost $2 billion. BGI temporarily ran the remaining $1 billion in a customized index fund.
Separately, the system committed $75 million to BlackRocks Mortgage Investors Fund, which invests in mortgage-backed securities. Funding comes from reducing an enhanced Lehman Aggregate index fund run by BGI.