Arizona State Retirement Board, Phoenix, on Nov. 21 dropped Strong Capital Management as a backup small-cap manager; it had not been managing money, said David Cannella, communications manager for the $18.7 billion fund. The board lost confidence in Strong as a money manager because of organizational issues, including the mutual fund market-timing investigation, Mr. Cannella said. Fund officials might select another backup firm at some point, he said.
In other action, the board hired Cramer, Rosenthal, McGlynn for a $70 million actively managed midcap portfolio, a new mandate. The money will be coming from a $1 billion internally managed passive midcap portfolio.
The board also hired Courtland Partners Ltd. as real estate consultant to assist with the fund's new 6% real estate allocation.