The money will be invested in three NTGI funds: International Developed Small-Cap index fund, Emerging Markets Small-Cap index fund and Frontier Markets All-Cap index fund. Exact amounts going to each fund have not been decided, Mr. Tosh said.
Overall funding will come from domestic equities or fixed income through gradual rebalancing to gain more international exposure. The system made the hire to gain exposure to small-cap strategies after the MSCI benchmark changed at the end of May, Mr. Tosh said.
Separately, the system committed $100 million to the DAG Venture Fund IV and $75 million to the Crestview Partners Fund II, a buyout strategy. The committee also approved investing up to $25 million in the in-house run Kentucky Retirement System Opportunistic Venture Capital Fund, Mr. Tosh said. Staff will have approval to invest in top-tier venture capital funds.