Sonoma County Employees Retirement System, Santa Rosa, Calif., hired Capital Guardian Trust to manage $79 million in active international core equities and Reams Asset Management to run $120 million in active domestic core-plus fixed income, said Greg John, assistant administrator of the $875 million system.
Funding for the international equity manager will come from rebalancing; funding for the fixed-income manager will come from termination of an active core-plus fixed-income portfolio run by Zurich Scudder, said Mr. John.
With the mergers that led to Scudder Kemper and then Zurich Scudder, Sonoma County officials felt the firm had become very different from the one they initially hired. Trustees decided they wanted to give Zurich Scudder time to develop a track record, said Mr. John.
"Zurich Scudder was not terminated for performance issues. We still have a strong relationship with them, he said. Zurich Scudder still runs $79 million in active international core equities for the pension fund.