Aurora General Employees drops Cadence Capital in strategy switch

Aurora (Colo.) General Employees’ Retirement Plan terminated Cadence Capital Management as an active domestic small-cap growth equity manager, said Thomas Connell, pension plan administrator.

The termination was the result of the $400 million pension fund’s decision to move to a domestic smidcap value strategy from small-cap growth.

Within domestic equities, the new target allocations are 70% large cap and 30% smidcap. The old targets were 80% large cap and 20% small cap.

BlackRock (BLK) runs $100 million in a passive domestic large-cap equity strategy.

Cadence, which ran $14 million, had been on watch for performance, but the termination was related “more to (the pension fund’s) change in strategy,” Mr. Connell said.

Active domestic small-cap value manager Smith, Graham & Co. Investment Advisors will be moved to an active domestic smidcap value strategy. It previously ran $16 million and will receive the $14 million from Cadence’s termination plus an additional $4 million from rebalancing, which brings its new portfolio size to $34 million.

Separately, the board approved an additional $2 million commitment to Molpus Woodlands Fund IV. The plan previously had committed $13 million to the fund, a timberland fund managed by Molpus Woodlands Group. The additional commitment will bring the pension fund’s current 3.6% allocation to timber closer to its 5% target.