The $89bn New York State Teachers Retirement System (NYSTRS) is searching for two managers to run up to $500m in enhanced passive international equities mandates.
Evaluation Associates (EAI) will be conducting the search for NYSTRS. According to a spokesman for the fund, the search is effective immediately. The spokesman declined to reveal when the closing date for interested parties was or when appointments are likely to be made.
Additionally, NYSTRS has removed a $358m emerging equities mandate from Capital International, following an asset allocation study. The study, conducted by Connecticut based EAI, recommended that NYSTRS scrap its 1% emerging markets allocation as a separate asset class. Instead, emerging markets will now form part of the international equities portfolio.
With the addition of emerging markets, NYSTRS international equities now stands at 10% of the funds total assets. NYSTRS said that it will now allow non-US equity managers to use emerging markets equities opportunistically within their existing portfolios by raising their maximum allowable exposure from 10% to 20%.
NYSTRS has also given British private equity firm Cinven $131m (EUR150) to put towards its latest European buyout fund. Two other private equity funds were invested in, with the CB Richard Ellis Strategic Partners II fund receiving up to $60m and Lone Star Fund IV, up to $200m. Also, NYSTRS committed a maximum of $50m to Essex Apartment Value Fund.
According to a spokesman for the fund, the board had also considered giving a $50m mandate to venture capital firm Advanced Technology Ventures (ATV). Despite the recommendation of the fund's investment staff, the board decided against giving ATV the mandate. The spokesman declined to comment on the reasoning behind the board's decision.
By Geoffrey Ho
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