Capital Guardian Trust 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 at PRIM's Aug. 5 board meeting. At the meeting, board members expressed concern that two portfolios the manager runs for the fund — a $600 million active EAFE equity portfolio and a $384 million emerging market equity portfolio — have underperformed in the past three year.
Capital Guardian spokesman Chuck Freadhoff said the changes being considered 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.