New York State Teachers' Retirement System, Albany, hired three money managers for a total of $644 million in international equities and distressed European debt and equity, confirmed John Cardillo, a spokesman for the $89 billion pension fund:
AQR Capital Management and Marathon London each was allocated up to $250 million to run in an active EAFE equity strategy for a year. Funding will come from internally managed domestic equities, Mr. Cardillo wrote in an e-mailed response to questions.
The move was made to help the system meet its international equity target, Mr. Cardillo wrote. The system recently raised its international equity target to 18% from 15%. As of June 30, international equities accounted for 13.3% of the system's portfolio.
Oaktree European Principal Fund III LP received a commitment of €100 million ($144 million). The Oaktree fund specializes in distressed equity and debt in Europe.
All three hirings are subject to the completion of due diligence. They were made at the fund's July 27 quarterly meeting.
Also at the meeting, the board approved an employer contribution rate of 11.11% of employee pay for 2011-2012, up from 8.62%. “The employer rate changes annually based on the most recent actuarial valuation,” Mr. Cardillo wrote. That valuation showed that “based on demographic member information and projected employee contributions and investment earnings, we need employers to contribute 11.11% to remain fully funded.”