Denver Employees Retirement Plan next month plans to decide on two active international equity managers to run $35 million each, one in emerging markets and one in small cap, confirmed Steve Hutt, executive director.
Mr. Hutt said officials at the $1.4 billion system have selected finalists in the shortlist search but he would not identify the firms.
Funding for the portfolios would come from reducing domestic equities and fixed income, he said.
The move is a result of the plan’s asset allocation study, which was completed in March, Mr. Hutt said.
Summit Strategies is assisting with the shortlist search.
Separately, the system terminated Independence Investments, which ran about $140 million in active domestic large-cap value equities, because of style drift, Mr. Hutt said.
“They had shifted to more of a core product than their pure value strategy,” he said. “We wanted to maintain a balance between domestic large-cap growth and large-cap value strategies.”
Mr. Hutt said the investment was moved to a Russell 1000 index fund managed by Northern Trust.