US - The $52.4bn Ohio Public Employees' Retirement System (OPERS) has selected nine managers to run a total of $3.85bn worth of mandates, according to the fund's consultant Ennis, Knupp & Associates.
Brady O'Connell, an Ennis, Knupp consultant working for OPERS, said that five of the chosen managers had been selected to run $2.6bn in US equities mandates. The hires represent a change in strategy at the fund as the entire portfolio was formerly managed in-house.
Wellington Management Company and Alliance Bernstein will run each $1bn in US large cap equities. Both managers will be benchmarked to the Russell 1000 index. The other three selected managers were Capital Guardian Trust, Fidelity and Invesco. Each will handle $200m for OPERS in US small-cap equities and will be benchmarked to the Russell 2000 index.
Also hired were Metropolitan West Asset Management and Morgan Stanley. The pair will run $600m each in US core-plus fixed-income, benchmarked to the Lehman Universal bond index. Funding will come from cash and the OPERS' internally managed fixed-income portfolio.
The two remaining managers, Harris Associates and Nicholas-Applegate Capital Management, will both run $25m in international small-cap equities mandates. The pair will be benchmarked to the MSCI EAFE small-cap index. Funding will come from cash.
O'Connell added that the fund is in final contract negotiations with the selected managers and that the appointments should be confirmed during the fourth quarter.
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