The $22 billion Minnesota State Board of Investment, St. Paul, yesterday hired money managers to execute investment strategies for bonds, emerging markets and alternative investments.
BlackRock Financial Management was hired to manage a semi-passive bond portfolio, said Howard Bicker, executive director. The amount has not been determined, but it will be in the range of $1 billion, said Mr. Bicker.
The money will come from Fidelity Management Trust Co., which resigned Jan. 1 because the SBI would not agree to a fee increase, according to the minutes of the December board meeting. Telephone calls to Fidelity were not returned.
The board also hired Montgomery Securities, Genesis Emerging Markets and City of London to each manage an emerging markets equity portfolio, Mr. Bicker said. It has not been determined how much each manager will receive, but the fund has an allocation of 2% of total assets to emerging market equities, said Mr. Bicker.
The source of the money to fund the commitment has not been determined, said Mr. Bicker.
Earlier, the board committed $40 million to the First Reserve Fund VII and $25 million to the Banc Fund IV, said Mr. Bicker. First Reserve will invest in energy companies; the Banc Fund will invest in small banks that are expected to be bought by larger ones, said Mr. Bicker. The commitments will be funded from cash.