Alaska Retirement Management Board, Juneau, is searching for up to three active international equity managers to run a total of up to $822 million.
The board at its June 16 meeting approved the recommendation of investment staff and investment consultant Callan to conduct the search, said Alysia D. Jones, liaison officer, in an email.
The board currently utilizes four active international equity managers for its pool of non-participant-directed plan assets and staff recommended searching for one to three additional active managers to run up to 40% of the assets currently run by the four incumbent managers.
As of April 30, those managers were Brandes Investment Partners ($574 million in pool assets), Arrowstreet Capital ($541 million), Capital Guardian Trust ($487 million) and Baillie Gifford ($453 million), according to board meeting materials.
The recommendation to increase the number of active managers "will allow staff additional flexibility in making allocation decisions among managers without overdiversifying the portfolio of managers," according to a memo recommending the search included with meeting materials.
Funding will come from reductions in the portfolios of current active managers. The number of managers hired and how the assets will be split has yet to be determined.
Ms. Jones said an RFP will not be issued, but interested managers are invited to contact Callan, which is assisting in the search.
Selections will likely be made at the September or December board meetings, she said.
The board oversees the management of a total of $40.5 billion in defined benefit and defined contribution plan assets, including the $23.5 billion Public Employees' Retirement System and $10.9 billion Teachers' Retirement System.
