Fort Lauderdale (Fla.) General Employees’ Retirement System hired State Street Global Advisors to run $40 million in passive domestic large-cap growth equities, said David Desmond, administrator of the $614 million pension fund.
It is the first passive equity hire for the pension fund, based on the recommendation of investment consultant Dahab Associates. There were no finalists.
Mr. Desmond said Dahab recommended creating a passive portfolio in order to reduce fees, and also because the pension fund is growing, it was advisable to have passive exposure.
Funding comes from reducing the portfolio of active domestic large-cap growth equity manager Garcia Hamilton & Associates, leaving the manager with a total of $25 million.
Garcia Hamilton also runs a $65 million domestic fixed-income portfolio, the entirety of the pension fund’s exposure in that asset class.