Small-Cap
The plan will fund the new active manager from its index allocation.
The Lone Star State retirement fund terminated one equity manager and placed another two on watch this week.
The plan expects to interview two finalists at its November investment committee meeting.
The plan is required to go out to bid every seven years.
The plan intends to issue RFPs for active core fixed-income and domestic small-cap value equity managers next month.
The plan is considering shifting its small- and mid-cap manager relationships as part of a broader discussion about the domestic equity portfolio.
The plan last conducted a similar search in 2016.
The retirement has led to at least one plan placing the firm on watch.
The plan is seeking passive large-cap equity providers and is also interested in firms with passive small-cap offerings.
The retirement system’s general investment consultant will return to next month’s board meeting with an international small-cap equity search.