Erie County (Pa.) Employees' Retirement System hired Vanguard Group to run a total of about $30 million in passive domestic equities, confirmed Mary Schaaf, county controller.
The hire was approved by the board of the $208 million pension fund at a special meeting on May 23 and was the result of the pension fund's decision to update its investment policy to include passive domestic equities.
The pension fund placed $17 million in a Vanguard S&P 500 index fund and $13 million in a Vanguard Russell 1000 Growth index fund.
Funding comes from reducing the allocations by about $7 million each to active domestic large-cap core managers Boston Advisors, C.S. McKee and The Philadelphia Trust Co. The reductions leave each manager with about $7 million.
Funding also comes from the termination of PNC Bank, which ran about $13 million in active domestic large-cap growth equities.
The remaining $4 million from the reductions and termination will be spread among the pensionfund's current fixed-income managers.
Investment consultant Morrison Fiduciary Advisors assisted.