New Orleans City Employees Retirement System will terminate an $11 million active domestic small-cap growth equity portfolio managed by Delaware Investments, said Jerry Davis, board chairman. The board of the $400 million fund voted to abandon the asset class because of its volatility. The money will be used to fund upcoming alternative manager hires, but Mr. Davis could not provide details about the potential managers or asset classes under consideration. Board members will likely vote on recommendations from alternatives consultant Graystone Partners at the board's regular meeting May 18.
Delaware Investments hopes to maintain the relationship with the fund in another asset class, said Christina Ward, spokeswoman.