February 14, 2013
FOR IMMEDIATE RELEASE
Treasurer Cowell Announces $500M Emerging Managers Program
Two firms selected for initial commitments of $150 million each
RALEIGH - State Treasurer Janet Cowell introduced a new program today to invest with firms that will help select emerging managers for the North Carolina pension fund’s equity investment portfolio.
The two firms selected for the initial round of investments were FIS Group and Leading Edge Investment Advisors. They were chosen based on their proven track record of identifying small investment firms with the potential to achieve above-benchmark results.
Both firms are historically underutilized businesses (HUBs) under North Carolina law, meaning that they are at least 51 percent owned by minority, women, disabled and/or disadvantaged business owners. The Department has made advancing a culture of diversity a strategic objective and is committed to working with HUBs to the extent possible without compromising superior risk-adjusted returns.
“We recognize that there are many smaller, high-performing managers that have the potential to add value to the pension portfolio,” Cowell said. “This program is designed to identify those managers so we can utilize their talent for the benefit of our state’s public employees.”
The Department selected FIS Group and Leading Edge Investment Advisors through a competitive search process. These firms will be allocated an initial $300 million of the $500 million over the next year to invest with emerging managers according to the pension fund’s overall equity investment portfolio objectives.
The North Carolina Retirement Systems, the formal name for the pension fund, is now the tenth largest public pension fund in the country. It provides retirement benefits and savings for more than 875,000 North Carolinians, including teachers, state employees, firefighters, police officers and other public workers. For more information, visit www.nctreasurer.com