Michigan Department of Treasury, Bureau of Investments, is searching for “a few” active international equity managers to manage about 2%, slightly more than $1 billion, of the total portfolio, confirmed spokesman Caleb Buhs in an e-mail.
The bureau manages the Michigan Retirement Systems, Lansing, which totaled $51.36 billion as of March 31.
The plan's target allocation to international equity was decreased to 16% of plan assets from 17% as part of an asset allocation review in 2010. The fund's allocation to international equity was 14.2% or $7.26 billion as of March 31, according to investment reports on the system's website.
No further details are available about the international equity search because the fund does not comment while searches are being conducted, Mr. Buhs wrote.
Investment staffers also are conducting a hedge fund-of-funds manager search that is nearing completion, Mr. Buhs wrote in his e-mail, reiterating that he could not comment further.
MRS raised the target allocation to hedge funds to 6% of plan assets from 2% after last year's asset allocation review. As of March 31, hedge fund investments totaled $1.461 billion or about 2.8% of the total portfolio, according to investment reports on the system's website.
Mr. Buhs said money manager inquiries should be directed to the system's general consultant, R.V. Kuhns & Associates, which is assisting with the external manager searches.