Knoxville (Tenn.) City Employees’ Pension Fund could search for a manager to replace Union Bancaire Privee, which had $1 million of the pension plan’s $17.5 million hedge fund allocation exposed to Bernard L. Madoff Investment Securities, said Mike Cherry, executive director.
The $335 million plan authorized consultant Summit Strategies Group to conduct the search, but will await a decision by the plan’s board as to whether to get out of the UBP investment and move ahead with the search, said Mr. Cherry.
Mr. Madoff pleaded guilty Thursday to 11 felony charges related to running a $64.8 billion Ponzi scheme.
UBP has set a redemption deadline near the end of the month, Mr. Cherry said. As far as the board knows, the UBP investment is the plan’s only exposure to Madoff, he said.
