Arizona State Retirement System, Phoenix, terminated active domestic midcap growth equity managers Frontier Capital Management, which ran $90.7 million, and Forstmann-Leff Associates, which managed $86 million, for poor performance, said David Cannella, communications manager for the $23 billion fund. Plan officials expect to search for replacements, but no time schedule has been set, 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 fund'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.