Minnesota State Board of Investment, St. Paul, terminated AllianceBernstein as manager of a $140 million active emerging markets equity mandate due to organizational concerns, confirmed Howard J. Bicker Jr., executive director, in an interview.
At a board meeting Monday, trustees approved shifting the money to a passively managed emerging markets strategy run by existing manager State Street Global Advisors. SSgA managed $1.6 billion in other passive and semipassive international equity developed-markets strategies as of Sept. 30, Mr. Bicker said.
In March, the Minnesota board terminated AllianceBernstein for management of $300 million in active domestic large-cap domestic growth equities, also for organizational reasons.
Trustees at the meeting also authorized commitments of up to $100 million each to Prudential Capital Partners IV and Windjammer Senior Equity Fund IV, both mezzanine debt funds. A commitment of $20 million was approved for investment in GHJM Marathon Fund VI, the latest fund run by existing manager Goldner Hawn Johnson and Morrison. The private equity fund focuses on midmarket opportunities primarily in the Midwest.
As of Sept. 30, the Minnesota State Board of Investments managed a total of $54 billion, including $48 billion of pension fund assets.