Austin Police system hires small, smidcap managers
By Kevin Olsen | August 24, 2012 3:59 pm
Austin (Texas) Police Retirement System hired Driehaus Capital Management and Delaware Investments to manage a total of $35 million to $40 million in small-cap and smidcap equities, confirmed Sampson Jordan, CEO of the $489 million system.
Driehaus will manage $10 million in international small-cap growth; Delaware will receive $25 million to $30 million in domestic smidcap growth, pending final negotiations. The system in July approved entering into negotiations with Walthausen & Co. to manage $15 million in domestic small-cap value equity, but a “breakdown in negotiations” caused the board to rescind the motion, Mr. Jordan said in a telephone interview.
The board then decided this month to add those assets to Delaware's $15 million allocation. Mr. Sampson said Delaware has a $25 million floor to get into a separate account and that the system would have had the original $15 million placed in the money manager's mutual fund.
Consulting Services Group assisted with the hires. The Driehaus investment is funded from cash while the Delaware investment will be funded from an S&P 500 index fund managed by Northern Trust.
Separately, the system hired Foster & Foster for actuarial services, replacing Rudd & Wisdom, following an RFP process, Mr. Jordan said.