Minnesota State Board of Investment, St. Paul, terminated equity manager CIC Asset Management because of "prolonged underperformance, according to minutes from its June meeting. The $47 billion system also terminated fixed-income manager Standish Ayer & Wood because of "poor performance and organizational issues, according to meeting minutes.
Beth McGoldrick, a spokeswoman for Standish Mellon Asset Management, declined to comment on the termination; Mellon Financial subsequently bought Standish Ayer. CIC Asset Management did not return calls seeking comment.
The system approved adding a midcap equity option to the states $639 million 457 plan. A committee was set up to establish a search and evaluation process for picking a midcap mutual fund and to determine when to add the option.
Howard Bicker, executive director, was not available to provide further information.