Jackson (Mich.) City Employees' Retirement System hired State Street Global Advisors to run $12 million in a Wilshire 5000 index portfolio, said Phil Hones, chairman. SSgA replaced active domestic large-cap equity managers Chartwell and Nicholas-Applegate, which ran $6 million each for the $28 million plan, Mr. Hones said. Chartwell managed a value portfolio, and was terminated for performance; Nicholas-Applegate ran a growth mandate, and was dropped for performance and personnel changes, he said. SSgA also runs $12 million in a Lehman Aggregate index fund. Asset Consulting Group assisted.
Nicholas-Applegate spokeswoman Sue Hunter said the firm was told the plan made the decision to move to a passive strategy. Mike McCloskey, Chartwell managing partner, could not be reached for comment.
Separately, plan officials will likely decide Dec. 3 to terminate Putnam because of the firm's alleged trading abuses, Mr. Hones said. The plan has $1.5 million in the Putnam International Equity mutual fund, he said. Officials will hear Asset Consulting Group's suggestions of other international equity funds, and a selection of a replacement is possible that day, he said.
Putnam spokeswoman Sinead Martin declined comment.