Oregon Investment Council, Tigard, will recommend that Walter Scott & Partners manage $600 million in active international equities and Fidelity Management & Trust run about $800 million in an enhanced EAFE portfolio, confirmed Jay Fewel, director of equity investments. The council, which oversees investments of the $45 billion Oregon Public Employees Retirement Fund, will vote on the recommendations Sept. 29. If approved, Walter Scott will replace Putnam, which managed $200 million in an active EAFE portfolio and was terminated last year after the firm was accused of market timing. Funding for the new portfolios will come from trimming several existing portfolios.
Also, the investment council last month terminated Veredus Asset Management, which ran $160 million in active domestic small-cap growth equities, as part of a rebalancing of the U.S. equity portfolio. The fund was overweight in small-cap equities. Also, a total of $250 million is being taken away from four active small-cap managers. Columbia Wanger Asset Management, which ran $898 million in small-cap/midcap core equities as of Aug. 31, will lose $100 million: value managers Wellington Management, which ran $439 million, and Becker Capital Management, which ran $327 million, will lose $60 million each; and growth manager Nicholas-Applegate Capital Management, which ran $195 million, will lose $30 million. Meanwhile, small-cap/midcap growth manager Mazama, which ran $171 million, will gain $50 million. The money will be moved to the fund's other domestic equity managers.
Strategic Investment Solutions is consultant.