Minneapolis Employees' Retirement System hired Capital Guardian Trust to manage $120 million in an active all-cap global equity strategy, said Judith Johnson, executive director of the $1.3 billion plan. Half of the funding for the portfolio comes from reducing passive assets managed by State Street Global Advisors, and half comes from active international equity mandates managed by Bank of Ireland and Wellington Management. The hire completes the plan's asset allocation changes, begun last year, Ms. Johnson said. Ennis Knupp assisted.
Separately, Minneapolis Employees hired Private Capital to assume management of a $75 million active domestic small-cap equity portfolio. Funding came from terminating Strong Capital Management, which was terminated because of ongoing SEC investigations into mutual fund late trading and market timing, Ms. Johnson said. Drew Wineland, Strong spokesman, said: "Though we are disappointed with this client's decision, we believe the significant changes under way at Strong should give investors confidence in maintaining their investments with our professionals."
Separately, Ms. Johnson said the plan's total return for the 2003 calendar year was 25.2%.