Kansas Public Employees Retirement System, Topeka, hired BlackRock and State Street Global Advisors to run a combined $2.5 billion in passive equities, confirmed Elizabeth B.A. Miller, chief investment officer of the $13 billion system.
BlackRock will run $1.6 billion in domestic equities, while SSgA will manage $925 million in international equities.
The SSgA portfolio is the system's first passive exposure in the asset class and makes up about a quarter of the system's 29% international equity allocation.
Funding comes from the September terminations of global equity managers Wellington Management, which handled $350 million, and Capital Guardian, which ran $329 million, as well as an existing transition index portfolio managed by BlackRock, Ms. Miller said.
“We are moving away from a global equity strategy,” Ms. Miller said in a telephone interview. “We decided to take a global equity approach, but with specific allocations to domestic and international.”
Separately, the board decided that the system will commit $130 million to private equity in 2012 and a plan for how the commitments will be made is currently in development, Ms. Miller said.