Phoenix City Employees pension fund to talk with large-cap equity finalists

Phoenix City Employees' Retirement System at its Oct. 18 board meeting will interview Loomis Sayles, MFS Investment Management and Robeco Group, finalists to run a $112 million active domestic large-cap value equity portfolio, confirmed Greg Fitchet, investment manager.

The $1.8 billion pension fund's investment consultant, R.V. Kuhns & Associates, conducted the invitation-only search.

The portfolio is currently managed by Dimensional Fund Advisors; the retirement system could decide to retain the firm, Mr. Fitchet said.

The interviews are part of the second phase of a domestic equity restructuring, an attempt by the pension fund to increase its large-cap equity allocation to 18.5%, according to Mr. Fitchet. Active large-cap value and growth were raised to 6.5% each from 5.5%, and passive large-cap equity was hiked to 5.5% from 2%.

In the first phase, allocations to Dimensional and active large-cap growth equity manager Cadence Capital Management were increased to $112 million each, while State Street Global Advisors currently runs $100 million in an S&P 500 index fund.

Funding for the restructuring come from rebalancing. No managers have been terminated.