The Baltimore City Employees' Retirement System hired Boston Co. to run $14 million in an emerging markets equities portfolio, its first in that asset class, said Roselyn H. Spencer, executive director. Funding will come from terminating T. Rowe Price, which ran $30 million in an active EAFE portfolio, Ms. Spencer said. Officials at the $1.2 billion system wanted to diversify the fund's 15% international equity allocation. T. Rowe Price and Acadian Investment were finalists. Callan assisted.
The remainder of the T. Rowe Price portfolio was added to Putnam's active international equity mandate, raising it to $56 million. The decision to add to the Putnam portfolio was made before civil fraud charges were filed against the firm, Ms. Spencer said, and plan officials are now taking a "watch-and-see position." Trustees will meet with a Putnam representative at their Nov. 20 meeting. "Putnam has been one of our best-performing managers," she added.