Seattle City Employees Retirement System terminated Amerindo Investment Advisors, which ran $24 million in active domestic large-cap equities, said Mel Robertson, assistant executive director of the $1.7 billion plan. Amerindo's co-founders, Alberto Vilar and Gary Tanaka, were indicted on charges of using investor funds for personal use earlier this summer. The board had concerns about the health of Amerindo's business based on what was happening with its founders, Mr. Robertson said.
The board will consider a replacement for Amerindo after an asset allocation study is completed this fall, Mr. Robertson said. A consultant will likely be hired at the board's next meeting on Sept. 1 to spearhead the study, which will include looking at whether to increase alternative and real estate investments, Mr. Robertson said. "If at all possible, we'd like to have the study occur in September so it can be approved at the October board meeting," he said.