Philadelphia Board of Pensions and Retirement is reallocating $40 million to internally managed strategic tactical investments from its midcap domestic equity portfolio, confirmed Francis X. Bielli, executive director of the $3.8 billion system.
The mandate will be run by the system's chief investment officer, Sumit Handa, Mr. Bielli said in a telephone interview.
“It can include any type of investment that will increase value or protect value on the downside,” Mr. Bielli said. System officials made the move to provide “more flexibility to market conditions going forward,” he said.
Investment decisions by Mr. Handa will require board approval, Mr. Bielli said.
Funding for the portfolio came from two midcap managers that were terminated earlier this year: Turner Investment Partners, which ran $22 million, and PENN Capital Management, which handled $18 million, he said.