The $1.8 billion Boston Retirement System might launch a search for a specialized fixed-income manager in the fall, depending on whether a style analysis by Callan calls for more diversification, said Michael Travaglini, executive officer.
In addition, the fund is in the final stages of a domestic small-cap search for one growth and one value manager, said Mr. Travaglini. Each firm will run $30 million to $35 million, from portfolios run by Target (small-cap growth) and Thorsell Parker Partners (small-cap value). Those firms will be terminated when the new managers are hired.
Finalists in the small-cap search have been selected, Mr. Travaglini said, but he declined to name them. Callan is conducting the search.
The fund uses three core fixed-income managers: MFS, which runs $100 million; Richmond Capital, $140 million; and Back Bay, $100 million. Funding for a new manager would come from the remaining $60 million of a fixed-income portfolio formerly managed by Nicholas-Applegate. If a new manager is not hired, the $60 million will be divided among the three existing bond managers.