Pennsylvania Municipal Retirement System, Harrisburg, is searching for an active domestic large-cap growth equity manager to run about $120 million, confirmed James Allen, secretary of the $1.8 billion pension fund.
An RFP is expected to be issued imminently because of personnel changes at current manager UBS Global Asset Management, which is invited to rebid.
Separately, the pension fund added $42.5 million each to core real estate manager TIAA-CREF, giving the portfolio a total of about $152 million, and to timber manager Forest Investment Associates, bringing that portfolio to about $117 million.
The additions are the result of the pension fund's approval of a recommendation at its March meeting to increase the overall target to real estate to 20% from 15%.
The allocation to core real estate increases to 12.5% from 10% of the overall fund, while timber increases to 7.5% from 5% of the overall fund.
Funding comes from reducing the passive domestic fixed-income portfolio managed by State Street Global Advisors by $85 million, leaving it with $241 million.
Mr. Allen said the fund is moving out of passive bonds because the Barclays Capital Aggregate Bond index now skews more toward government bonds and because of the distortion of the fixed-income asset class by the actions of the Federal Reserve.
Investment consultant Dahab Associates is assisting.
