Connecticut Retirement Plans and Trust Funds, Hartford, is reviewing a list of semifinalists to run small-cap/midcap equity, Denise L. Nappier, state treasurer and principal fiduciary for the $23.5 billion system, confirmed in an e-mail response to questions.
She did not identify the firms.
Finalists will appear before the Investment Advisory Council in August, and Ms. Nappier will make a decision after consulting with the council, she wrote.
The allocation to small-cap/midcap equity is “roughly $1 billion at policy targets as of March 31,” she wrote.
The manager search started in June 2009. At the time, TCW and AXA Rosenberg were the two managers for the small-cap/midcap equity portfolio.
TCW was terminated in March 2010 “after being evaluated in the course of the current small/midcap search review,” Ms. Nappier wrote. TCW was “no longer a good strategic fit for this sector within the Mutual Equity Fund.” She did not elaborate.
It could not be learned by press time how much TCW ran for the Connecticut system.
In mid-May, a spokeswoman for Ms. Nappier said the treasurer was “closely monitoring” developments related to AXA Rosenberg's investigation of coding errors discovered in June 2009 in its quantitative programs.
AXA Rosenberg manages $841 million in small/midcap equities and $215 million in a 130/30 equity strategy for the Connecticut funds.
“The amount of assets that will remain with AXA Rosenberg will be determined once their internal investigation into their coding error is complete,” Ms. Nappier wrote.