Pennsylvania Turnpike Commission, Harrisburg, is searching for global tactical asset allocation, hedge fund of funds and value-added real estate managers for its $273 million retiree medical trust.
The GTAA manager will run $26 million, and the hedge fund-of-funds manager and value-added real estate manager will run $13 million each, said David A. Russell, senior investment strategist at Investment Performance Services, the commission's investment consultant.
The searches are the result of an asset allocation review that IPS conducted in May, Mr. Russell said. The review created a 10% target to GTAA and increased the real estate target to 15% from 10% and the hedge fund-of-funds target to 10% from 5%.
Funding will come from reducing the targets to domestic equities and overall fixed income to 29% and 16%, respectively, from 35% and 30%; no managers will be terminated.
Targets to international equities at 10%, and commodities and emerging markets equities at 5% each, remain unchanged.
The GTAA RFP, the hedge fund-of-funds RFP and the real estate RFP are all available on the commission's website. All proposals are due at 4 p.m. EDT on Aug. 18. Finalist interviews and a decision are likely to occur in November.