Pennsylvania Public School Employees' Retirement System, Harrisburg, hired NISA Investment Advisors to manage up to $10 billion in liquid markets exposure through a direct beta overlay program, as well as a collateral account of $2.5 billion to support that exposure.
The $71.9 billion pension fund's board approved the hiring at its Oct. 20 meeting, according to a resolution posted on its website.
According to a presentation, the pension fund conducted a search for an external firm to managed its strategic implementation portfolio, which provides exposure "to a range of assets via total return index swaps."
It is currently managed internally by four PSERS employees, and staff and investment consultant Verus Advisory recommended an external manager because regulatory burdens would have required a significant investment in internal resources, and hiring the external manager with those resources already would bring the program up to institutional quality, according to the presentation.
According to the presentation, NISA will likely take over the management of the strategic implementation portfolio in mid-2024.
