Acadian Asset Management, which managed $646 million for three New York City pension funds, was one of six investment advisers dismissed for “poor performance,” New York City Comptroller John Liu said.
Mr. Liu’s disclosure on Wednesday responded to an April 11 Bloomberg News request under the state freedom of information law that he name the managers he said on April 8 he had terminated. His office said June 11 that Emerald Infrastructure Development Fund and RiverSource Investments were two of the six.
Mr. Liu’s office said it terminated Acadian, whose investments for New York City included Greek stocks, for “underperformance relative to the market.”
“You are directed to cease trading for the accounts as of close of business on June 8, 2010,” states a letter dated June 9 from David Jeter, assistant comptroller for asset management. Mr. Liu is the sole trustee of the city’s five pension funds, which have a combined $103 billion in assets.
The order to Acadian, which was hired in July 2007, says assets managed by the firm “were transitioned to other investment managers” this month.
“We also request that all Greek securities held by these systems be liquidated immediately,” the order says.
The pension boards voted April 6 to terminate Acadian, Sharon Lee, Mr. Liu’s spokeswoman, said Wednesday. She said the gap between the June 9 order and Mr. Liu’s April 8 announcement of the firings was “part of the process” and didn’t elaborate. On Tuesday, she said the office would reveal all six firms by Sept. 15.
From July 2007 through May 2010, the $286 million Acadian managed in the New York City Employees’ Retirement System had lost 19.4%; its $263 million in the police fund lost 17.1%, and the $97 million it oversaw in the firefighters pension also lost 17.1%, Mr. Liu’s office said.
Greek stocks and bonds plunged earlier this year on speculation the country would default on its debt. As investor concerns grew about other European countries, the European Union and the International Monetary Fund created a $150 billion bailout.
A voice mail for Churchill Franklin, Acadian’s COO, wasn’t immediately returned.