Texas Employees Retirement System, Austin, is searching for multiple managers to split a new active international small-cap equity allocation of at least $600 million.
“The purpose of this investment is to diversify the international asset class to include small-cap exposure. We have not had dedicated exposure to international small cap prior to this search,” said Betty Martin, the $25 billion pension fund's director of investment services, in an e-mail.
Allocations for each long-only investment strategy are expected to be between $50 million and $200 million, Ms. Martin said.
Money management firms must register with ERS and submit the pension fund's short form by 5 p.m. CDT Sept. 14.
The search is being conducted internally in three stages by ERS investment staff with assistance from investment consultant Aon Hewitt Investment Consulting. Short forms will be reviewed, and selected managers will be asked to return the pension fund's due diligence questionnaire by Oct. 26. Manager interviews and onsite visits will be conducted prior to final manager selection by March 10, according to an announcement of the search on the plan's website.
Preliminary requirements for money manager applicants are registration and good standing with the Securities and Exchange Commission; the firm must be at least 3 years old; and information about the proposed international small-cap equity strategy as of June 30 must be submitted to the eVestment database.
