Oregon Investment Council, Tigard, which manages the $60.6 billion Oregon Public Employees Retirement Fund, Salem, this quarter expects to select either BGI or SSgA to implement a new $220 million tiered emerging markets equity strategy, said Michael Mueller, deputy CIO.
Council staff did not issue an RFP or conduct a search.
Currently, several of the councils international equity managers can invest in emerging markets equities. The council also has three active emerging markets managers: Genesis Asset Management, Arrowstreet Capital and Pictet Investment Management.
The tiered strategy is an alternative to the traditional cap-weighted indexes, Mr. Mueller explained. The proposed structure more equally distributes country weights within three defined tiers, which are rebalanced annually based on country market capitalizations, he said.
Funding will most likely come from the councils $11.2 billion U.S. equity portfolio. No terminations will result. Consultant Strategic Investment Solutions is assisting.