Updated with a correction.
Pennsylvania State Employees' Retirement System, Harrisburg, approved $675 million in new investments, said a news release issued by the $28.7 billion pension fund.
At its investment meeting on Wednesday, the board hired two managers to run $200 million each as part of its emerging investment manager program. Leading Edge Investment Advisors was hired for an emerging markets equity strategy, and FIS Group for an international small-cap equity strategy.
Funding for both strategies will come from a Russell 1000 index portfolio managed by Mellon Capital Management, subject to completion of contract negotiations.
The board also committed $200 million to a global macro absolute-return advantage strategy managed by Eaton Vance Management. Funding will come from reducing a Mellon Capital Bloomberg Barclays Aggregate Bond index portfolio, subject to successful completion of contract negotiations.
The Mellon Capital equity and bond index portfolios had $5.4 billion and $1.2 billion in plan assets, respectively, as of Sept. 30.
Also, the board committed up to $75 million to LLR Equity Partners V, a buyout fund managed by LLR Partners.