Nevada PERS terminates 2 active international equity managers

Shifts entire allocation to passive management

Nevada Public Employees’ Retirement System, Carson City, terminated active international equity managers Franklin Templeton (BEN) Investments (BEN) and Manning & Napier, which each ran about $770 million, said Stephen J. Edmundson, investment officer.

The terminations are the result of the $32.9 billion pension fund’s board voting at its meeting on Wednesday to have 100% passive exposure within its 18% target allocation to international equities. The investments had been 75% passive and 25% active, and Mr. Edmundson said the change to a fully passive portfolio is a “further move toward managed beta exposure.” He said there were no issues with the performance of either manager.

The assets will be added to Mellon Capital Management’s passive international equity portfolio, giving the manager about $6.1 billion in that portfolio.