Indiana Public Retirement System, Indianapolis, hired four managers to run a total of $1.1 billion and terminated six managers running a combined $1.5 billion in seven equity portfolios, according to a report to trustees of the $25.7 billion pension system.
Bridgewater Associates and AQR Capital Management were hired to manage $400 million each in risk parity strategies. The investments are in Bridgewater's All Weather fund and AQR's Global Risk Premium fund.
BlackRock was hired to manage $200 million in a passive emerging markets equity portfolio, and the retirement system committed $100 million to Blackstone Real Estate Partners VII, a closed-end opportunistic fund that invests in commercial real estate assets.
The hirings and terminations took place throughout February and March, and were presented to the board at its April 27 meeting.
The retirement system terminated the six managers to fund the risk-parity strategies as well as an ongoing commodities search as part of the board's new, long-term strategic asset allocation.
The terminated managers are T. Rowe Price, which ran $545 million in enhanced domestic large-cap equities; State Street Global Advisors, $347 million in an MSCI ACWI ex-U.S. and $144 million in MSCI EAFE passive equity portfolios; Numeric Investors, $137 million active domestic small-cap value portfolio; Wells Capital Management for a $106 million active domestic all-cap growth portfolio; Quantitative Management Associates for a $100 million active domestic large-cap portfolio; and Cortina Asset Management for a $69 million active domestic small-cap portfolio.
The retirement system had a 31.2% allocation to public equity as of March 31, but a target allocation of 22.5%. Risk parity had a 4% allocation, but a 10% target, and commodities had a 5.9% actual allocation compared to an 8% target.
Also, it was reported to the board that three managers were placed on the retirement system's watchlist for performance — Artisan Partners' $249 million domestic midcap equity portfolio; J.P. Morgan Asset Management's $238 million in an S&P 500 index fund; and Barrow, Hanley, Mewhinney & Strauss' $207.5 million domestic equity portfolio.
Matt Egenes, director, portfolio specialist, at Barrow Hanley, and Charlotte Powell, JPMAM spokeswoman, said their respective firms had no comment. Mike Roos, Artisan spokesman, did not return a phone call seeking comment.