El Paso (Texas) Employees' Retirement Trust hired Arrowstreet Capital as an active international equity manager.
The $1 billion pension fund's board approved the hiring at its Sept. 15 meeting, a video of the meeting shows.
The hiring was the result of the board's decision at its Aug. 18 meeting to restructure its 21% international equity target.
Within the international equity target, the new structure allocates 60% to active international equities benchmarked to the MSCI All Country World ex-U.S. index and 40% to an MSCI All Country World ex-U.S. index fund.
The previous structure within the international equity target was 40% to a developed markets index fund and 20% each to active emerging markets, active international developed markets all-cap equities and active international developed markets small-cap equities.
The board at its Sept. 15 meeting approved hiring Arrowstreet as a new active international equity manager to complement existing active international equity manager Lazard Asset Management. How the active portfolio will be split between the managers was not disclosed. As of Sept. 14, Lazard ran $42 million for the pension fund.
Mellon Investments will continue to manage the $85 million passive portion of the international equity portfolio.
As a result of the structural changes, the board also approved terminating AQR Capital Management from its $42 million active emerging markets equity portfolio and Franklin Templeton from its $42 million active international small-cap equity portfolio.
Callan assisted with a shortlist search.
Executive Director Robert B. Ash could not be immediately reached for further information.