Haverhill (Mass.) Retirement System, with $115 million in assets, picked Irish Life, MFS Institutional Advisers and INVESCO as international equities managers to run $5 million each, subject to approval from the systems lawyers.
Funding will come from terminated managers Bank of Ireland and Babson-Stewart Ivory International. Babson-Stewart was terminated for performance reasons.
Stephen OBrien, executive vice president at Babson-Stewart, said he believed Haverhill wanted to move to larger companies rather than the small and midsized companies in Babsons portfolio.
"If measured against a parametric benchmark, we did much better than the EAFE mandate, even though the consultant and the client knew we had a bias toward small and midsized companies. They had a desire to pick up a true EAFE manager, so the EAFE benchmark would be more appropriate, he said.
The retirement system also picked four finalists in its search for small-cap value managers.
They are Phoenix Investment Counsel, David L. Babson, Fisher Investments and STI Capital Management. The system hopes to pick a manager at its Sept. 29 meeting. Wainwright Investment Counsel is assisting.