Oregon Investment Council, Tigard, which manages the $57.3 billion Oregon Public Employees Retirement Fund, Salem, hired UBS to run $500 million in its active global ex-U.S. all-cap growth equity strategy. UBS target allocation is 5% of the councils $10.43 billion international equity portfolio, said Ley Garnett, spokesman for state Treasurer Randall Edwards, who oversees state investments including the pension fund.
Funding for the UBS portfolio will come from trimming the portfolios of growth equity managers TT International and Walter Scott Partners by about $250 million each, Mr. Garnett said. Each firm manages $1.1 billion.
Separately, the council committed $200 million to Alinda Infrastructure Fund II and $100 million to private equity fund Riverstone/Carlyle Renewable & Alternative Energy Fund II, said Mr. Garnett.
The Riverstone/Carlyle fund has a $4 billion target and a $5 billion hard cap and will invest in renewable energy companies. Alinda said expected returns would be 18% to 20% IRR over five to seven years and 15% IRR over a 20-year period.
Consultant Strategic Investment Solutions assisted.
The council also gave two-year contract extensions to general consultants Strategic Investment Solutions and PCA through 2010.