Pa. Plan Makes Hires For New Currency, Commodities Programs

Jun 16 2006 | 9:59pm ET

The $54 billion Pennsylvania Public School Employees' Retirement System has made hires for its new currency and commodities programs.

The fund has selected Pareto Partners to handle a currency hedging overlay strategy for 30% ($3.1 billion) of its international equity portfolio, and Goldman Sachs Asset Management to handle 0.25% ($1.35 billion) of total assets in a currency overlay mandate. 

FX Concepts and Mellon Capital Management were also hired for the currency overlay program and will be funded as necessary to fund losses or any collateral needs, according to minutes from the plan's June 9 meeting.

For its commodities program, the fund hired Deutsche Asset Management, Wellington Management Company and Credit Suisse. Each manager will handle about 1.67% of the fund's assets, or $900 million each.

The two programs were recommended as part of a recently completed asset allocation study conducted by Wilshire Associates.

Separately, the fund made $975 million in private equity commitments. The plan will invest $300 million to KKR 2006 Fund, $200 million to First Reserve Fund XI, $100 million to Windjammer Senior Equity Fund III, $300 million to Avenue Asia Special Situations Fund IV and $75 million to in PNC Equity Partners II.

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