WASHINGTON - The District of Columbia Retirement Board approved last month a new plan for separating more than $2.3 billion in assets scheduled to be transferred to the U.S. Treasury Department, under a D.C. bailout law enacted last year.
The Treasury Department plans to liquidate those assets to fund other White House initiatives approved under last month's budget law. The pension fund decided to scratch its previously undisclosed proposal for separating assets in favor of the new proposal.
Under the plan, the $4.5 billion fund agreed to retain Alliance Capital, domestic small-cap equities; Edgar Lomax, domestic large-cap value; Kenwood Group, domestic midcap value; and LM Capital and Western Asset Management, domestic fixed income. Western also runs a global fixed-income portfolio for the fund. Bank of Ireland, which runs an international equities portfolio, also will be retained.
The Treasury Department will handle these portfolios: Woodford Capital's large-cap growth equities; GW Capital's domestic midcap growth; Barclays Global Investors' domestic enhanced index; and Cowen Asset Management's domestic small-cap value.
The fund also decided to drop a domestic fixed-income portfolio run by Morgan Grenfell, and a midcap value portfolio run by Sasco.
The fund will split the domestic indexed portfolio run by Alliance. In addition, the fund will keep all illiquid alternative investment portfolios, as earlier agreed upon.