Arizona State Retirement System, Phoenix, plans to issue an RFP for active domestic midcap growth equity managers to replace Frontier Capital Management, which ran $90.7 million, and Forstmann-Leff Associates, which managed $86 million, said David Cannella, communications manager for the $23 billion fund. The firms were terminated for poor performance, he said. No time schedule has been set for issuing the RFP, Mr. Cannella said.
Forstmann-Leff officials do not comment on client matters, said Merik Sarmiento, spokesman. Kirk Smith, spokesman for Frontier Capital, could not be reached by press time.
Separately, the system's board created an $30 million internally managed REIT portfolio. Funding came from the system's $1.38 billion real estate portfolio.
The system also reported its investments returned 8.5% for the fiscal year ended June 30, down from 17.5% the previous year.