Pennsylvania Municipal Retirement System, Harrisburg, hired HGK Asset Management, Johnston Asset Management and Wentworth, Hauser & Violich to run $50 million each in active international equities, confirmed James Allen, secretary to the $1.4 billion system.
HGK will run mostly core, with a slight value style, and Johnston Asset and Wentworth Hauser will manage in growth, according to Mr. Allen.
The retirement system issued an RFP in August for active international equity managers.
Incumbent managers were Mercator Asset Management, which ran $105 million in value, and Wentworth Hauser and GlobeFlex Capital, which ran about $50 million and $35 million, respectively, in growth as of Sept. 30. Pennsylvania law that requires that manager contracts must be put up for bid every five years. Mercator Asset's contract expires Feb. 7; Wentworth Hauser's, Feb. 9; and GlobeFlex Capital's, Feb. 9. The new contracts will begin Jan. 31 so there can be a transition period, Mr. Allen said.
Consultant Dahab Associates had recommended Wentworth Hauser's hire without an interview, which the board approved. Mercator and GlobeFlex were among the finalists interviewed at last week's board meeting, as well as Marathon-London and Scout Investments.
Additionally, the retirement system hired State Street Global Advisors to run $100 million in passive international equities. SSgA currently runs a passive emerging markets equities portfolio for the system currently worth $151 million. The SSgA hire is also a result of the RFP that was issued in August; Dahab Associates recommended the move last week.