Austin (Texas) Police Retirement System hired CAZ Investments, PIMCO, Ashmore Investment and Eagle Asset to run a combined $43 million for the $310 million pension plan, said Sampson Jordan, pension administrator. CAZ will manage $15 million in active domestic large-cap growth equities; PIMCO, $10 million in its Commodity Real Return Strategy mutual fund; Ashmore, $10 million in a commingled emerging markets fund of funds; and Eagle, $8 million in active domestic midcap growth equities, Mr. Jordan said. Monroe Vos Consulting Group assisted with the shortlist searches.
Funding for CAZ came from reducing a similar portfolio, run by Davis Hamilton Jackson, to $3 million because of performance, Mr. Jordan said. Funding for PIMCO and Ashmore came from terminating Hoisington from a $20 million active domestic long-duration bond portfolio because of trustees' concerns about rising interest rates, he said. Funding for Eagle came from terminating Navellier & Associates for the performance of a similar mandate, he said.
Jim O'Leary, Navellier's director of institutional management, said Navellier's portfolios of high-quality stocks tend to trail the Russell Midcap Growth benchmark during "low-quality" rallies like the one seen in the second quarter of 2003. "Over time, high quality will outperform low-quality portfolios," Mr. O'Leary said. Jeff Sarff, Davis Hamilton COO, did not respond by press time to a request for comment.
