Pennsylvania State Employees’ Retirement System, Harrisburg, moved $370 million to a passive domestic equity account and committed $215 million to five alternative funds, said Pamela Hile, spokeswoman for the $27.6 billion pension plan.
The PennSERS board approved moving approximately $370 million to an existing Mellon Capital Russell 1000 Growth index portfolio from the active large-cap equity portfolio of Cornerstone Investment Partners. According to the plan’s annual report for the year ended Dec. 31, that was the total Cornerstone portfolio; the Mellon Capital index fund had $2.86 billion at year-end.
Ms. Hile said the reallocation was made because Cornerstone was underperforming. Further information could not be learned by press time.
The board also committed $50 million each to ADV Opportunities Fund I, an Asia-focused private equity middle-market fund managed by ADV Partners, and Clearlake Capital Partners IV, a distressed debt fund managed by Clearlake Capital Group that targets special situations, distressed and value investments.
PennSERS also committed $50 million each to H.I.G. Brazil & Latin America Partners, a buyout fund managed by H.I.G. Capital targeting the region, and Sterling Group Partners IV, a buyout fund.
The pension fund also committed up to $15 million to Lightspeed India Partners, a venture capital fund managed by Lightspeed Venture Partners targeting India-based technology firms.
All commitments are subject to contract negotiations.
