University of Maine System, Bangor, hired Kabouter Management to run about $10 million in active international small-cap equities for the system's $302 million managed investment pool of six endowment funds, said Tracy E. Elliott, director of finance and controller, in an email.
The system conducted a shortlist search following the creation earlier this year of a new 5% target to international small-cap equities, funded by the reduction of the international equity target to 11% from 16%.
Current international equity managers are GlobeFlex Capital and Morgan Stanley (MS) Investment Management, which each ran $25 million as of July 31. Funding will come from reducing those managers' portfolios. About $5 million of GlobeFlex's portfolio is invested in small-cap equities.
Investment consultant NEPC assisted.