New Mexico Public Employees Retirement Association's investment committee will recommend at the board's Feb. 27 meeting that the board allow C.S. McKee's contract for a $347 million large-cap U.S. equities portfolio to expire on June 30 and terminate Northern Trust Asset Management's $367 million passively managed Russell 1000 growth large-cap U.S. equity portfolio, said Julian Baca, deputy chief investment officer for the $14 billion Santa Fe-based pension fund.
Both managers' assets would be moved into an existing Russell 1000 index fund managed by State Street Global Advisors.
The committee is recommending C.S. McKee's contract be allowed to expire because of staff turnover and performance-related reasons. Mark Gensheimer, president of C.S. McKee, could not be reached for comment by press time.
The committee is recommending the termination of Northern Trust as part of a consolidation into a single core index.
The matter is expected to go before the board at its Feb. 27 meeting.
Separately, the investment committee at its Feb. 11 meeting decided to recommend the adoption of the 2014 alternative investment assets commitment plan. Under the plan, PERA would commit $290 million to private equity, $200 million to real assets and $80 million to real estate.