Capital Guardian Trust said it is considering "significant changes within the firm" in response to concerns about the company's investment results in recent years, Stanley Mavromates, deputy CIO of the $32.6 billion Massachusetts Pension Reserves Investment Management Board, noted today at PRIM's latest board meeting. At the meeting, board members expressed concern that two portfolios the manager runs for the Boston-based fund — a $600 million active EAFE equity portfolio and a $384 million emerging market equity portfolio — have underperformed over the past three years.
Capital Guardian spokesman Chuck Freadhoff said the changes being considered at Capital Guardian, which invests on behalf of U.S. institutional clients, are "more a matter of tweaking the existing process than significantly changing it." Company officials are discussing hiring more investment professionals, having existing professionals focus more on specific regions and finding ways to increase communication among the company's employees around the world, he said. No decisions have been made, but company officials hope the eventual changes "will help us significantly improve" the company's investment results, Mr. Freadhoff said.