New York State Teachers' Retirement System, Albany, approved hiring Dimensional Fund Advisors to manage $100 million in emerging markets equities benchmarked to the MSCI Emerging Markets Index, confirmed John Cardillo, pension fund spokesman.
The hiring is subject to completion of due diligence. It was approved by the board of trustees of the $88.1 billion pension fund at its quarterly meeting on Thursday.
The move is part of the pension fund's reallocation of assets from passively managed domestic equity portfolios to international equity, based on an asset allocation plan approved by the board of trustees in July 2011, Mr. Cardillo explained. No managers were terminated.
The board also approved one-year contract renewals for three international ex-U.S. real estate securities managers and five international equity managers.
The real estate managers are LaSalle Investment Management, $110 million; RREEF America, $113 million; and EII Realty Securities, $119 million.
Of the five international managers, two are passive: BlackRock, which manages $6.7 billion in an MSCI ACWI ex-U.S. strategy; and State Street Global Advisors, $4 billion in EAFE equity.
Contracts were renewed for active international equity manager Aberdeen Asset Management, $385 million, ACWI ex-U.S. international equities; AQR Capital Management, $252 million, EAFE equities; and Marathon Asset Management, $266 million, EAFE equities.
In addition, the NYSTRS board approved renewing for one-year contracts of its three consultants: Hewitt EnnisKnupp, general investment consultant; Callan Associates, real estate; and StepStone Group, private equity.