Updated Oct. 27, 2011
Pennsylvania State Employees' Retirement System, Harrisburg, hired Mellon Capital Management to run $3 billion in global index equities, and also signed on three TIPS managers to run up to a total of $500 million, Pamela Hile, spokeswoman for the $25 billion system, confirmed in an e-mail.
Brown Brothers Harriman and Pacific Investment Management Co. were hired to run up to $200 million each and New Century Advisors, $100 million.
Mellon will run money reduced from a similar-style portfolio managed by BlackRock, leaving it with $350 million, while funding for TIPS hires will come from trimming the portfolio of NISA Investment Advisors, leaving it with about $1 billion.
Mellon's hiring was part of a restructuring of part of the global index equity allocation currently in commingled accounts into two separate accounts and hired Northern Trust Transition Services to complete that process.
The hirings are part of an effort to “gain diversity,” among managers, according to Ms. Hile.
The system also hired Mellon Capital Management to manage three equity index funds in its $2.2 billion deferred compensation program. The options are new.