Fairfax City (Va.) Supplemental Retirement Plan hired Batterymarch Financial Management to run $8 million in active domestic small-cap equities, said David Hodgkins, finance director. Funding will come from terminating active domestic fixed-income managers Banc of America Capital Management for an $11 million portfolio, and Standish Mellon for a $14 million portfolio. Staff turnover and performance, as well as asset allocation changes, were the reasons for terminating Banc of America; and there were performance concerns with the Standish Mellon portfolio, Mr. Hodgkins said. The remaining money was already allocated to Wellington for a core-plus fixed-income portfolio. New England Pension Consultants assisted.
In addition, the $80 million pension plan cut $4 million from a domestic large-cap value equities portfolio run by Standish Mellon, leaving it with $36 million. The $4 million was also allocated to the Wellington portfolio.
Bonnie Benhayon, a spokeswoman for Banc of America, said, "there would be no reason for them to pull the money based on performance, but she added that a recent personnel change could have contributed to the move. Officials at Standish Mellon did not return calls seeking comment by press time.