Indiana voters yesterday approved a measure allowing equities to be bought by state pension funds, opening the door to gradual but potentially big changes at the two largest state funds. Similar measures failed in 1986 and 1990.
Garth Dickey, executive director of the $5.3 billion Indiana Public Employees' Retirement Fund, Indianapolis, said as a first investment, his fund probably will move about $300 million in fixed income to an equity index fund managed by an existing manager.
Robert Newland, investment officer with the $3.4 billion Indiana State Teachers' Retirement System, Indianapolis, said the board is likely to send out RFPs for a consultant to assist with the move into equities. RFPs could go out possibly around the first of the year. After that, asset liability studies and asset allocation reviews will be conducted, followed by manager hirings. Indiana Employees' already hired Mercer to assist Burnley Associates with an asset allocation review. The board will decide on its next step next week after Mercer presents its results, Mr. Dickey said.