Michigan Municipal Employees' Retirement System, Lansing, plans to hire two or three managers in January to run a 3% allocation to active U.S. microcap equity, said Jeb Burns, chief investment officer for the $6 billion system. The search began in the summer.
The fund plans to search for additional managers to run 2% in the same style in the first half of 2011, he said in an interview. An RFP for that allocation has not been issued and no hiring timetable has not been set, Mr. Burns said. Interested managers should contact MERS staff.
The hires are part of a plan to put a total of 5% in active domestic microcap.
Also, TCW Group was hired for emerging markets debt, another new dedicated asset class. TCW will manage 5% of total fund assets, or about $300 million.
Mr. Burns said MERS has had some emerging markets debt exposure through existing fixed-income managers, but the new allocation is its first dedicated exposure.
Funding for both hires will come from adjustments made during an asset allocation overhaul approved in July.