Trustees of the $26 billion New York City Teachers' Retirement System suspended a $50 million commitment to HSBC Asset Management for emerging markets because of the resignation of the portfolio manager that would oversee the fund's account, said Melvyn Aaronson, a board member.
The board will wait and see how the situation works out before funding the commitment, said Mr. Aaronson. The commitment to HSBC was made in February.
A telephone call to HSBC seeking the identity of the portfolio manager was not returned.
In the interim, the $50 million will be divided evenly among other emerging markets managers hired in February. Schroder Capital Management International, Morgan Stanley Asset Management and Genesis Investment Management Ltd. will now receive $92 million apiece, up from $75 million. In addition, a $174 million allocation to Bankers Trust Co., which was hired at the same time for an international index fund was reduced by $1 million.
