Florida State Board puts 3 on watch, takes 3 others off list
By Barry B. Burr | November 2, 2012 3:33 pm
Florida State Board of Administration, Tallahassee, placed on watch BlackRock (BLK), Templeton Investment Counsel and Cohen & Steers, which manage a combined $3.4 billion, according to a report prepared for the staff.
BlackRock, which manages $1.6 billion in international core alpha tilt enhanced equities, tracking the MSCI World ex-U.S. index, was listed on watch for lagging performance. Farrell Denby, BlackRock spokesman, said the manager doesn't comment about clients.
Templeton Investment Counsel, which manages $1.5 billion in active international developed markets equities, was put on watch for organizational changes from the June 18 death of Gary Motyl, chief investment officer of Templeton Global Equity Group, which oversees the portfolio investments. Mr. Motyl was replaced in July by Norman J. Boersma.
Cohen & Steers, which manages $277 million in global real estate investments trusts, was added to the watchlist for organizational issues. Scott Crowe, head of the global team, left the firm in May, according to FSBA information provided by John Kuczwanski, communications manager. Jon Cheigh, executive vice president who oversaw the U.S. team, was promoted in May to head of the global team. Among other changes, Tom Bohjalian, executive vice president who was lead portfolio manager for U.S. realty income, was also promoted in May to lead portfolio manager of U.S. portfolios. William Leung, who was Asia portfolio manager for Deutsche Bank/RREEF Real Estate was hired last month as portfolio manager and co-head of Asia-Pacific team. Anthony Ialeggio, Cohen & Steers senior vice president and director of global marketing, couldn't be reached for comment.
In addition, the FSBA removed from watch State Street Global Advisors, which manages $769 million in active core emerging markets equity; Epoch Investment Partners, $326 million in international developed markets small-cap core equities; and HSBC Global Asset Management, $77 million in active frontier markets equities.
Epoch, placed on watch in the fourth quarter of 2011, was removed because of improving performance; SSgA, placed on watch in the second quarter of 2009, and HSBC, placed on watch in the fourth quarter of last year, were taken off after resolving organizational issues.
Mercer Investment Consulting, the FSBA's investment consultant, assisted with the review and prepared the report recommending the actions.
FSBA has no time frame for taking action on the managers on watch, Mr. Kuczwanski said in the e-mail.
The FSBA oversees $156.9 billion.