Phoenix City Employees’ Retirement System will be searching for an active small-cap international equities manager sometime in the fourth quarter, confirmed Greg Fitchet, investment manager of the $1.6 billion fund.
The new manager will get 12% of the system’s $307.4 million international equities portfolio.
The retirement system also is moving 18%, or about $55 million, of the overall international equities portfolio to an SSgA ACWI World index ex-U.S. non-lending fund, Mr. Fitchet said in a telephone interview.
Funding will come from reducing two international large-cap managers — GMO, which runs $124 million in value, and Pyramis, which handles $125 million in growth. Each will be reduced to 35% of the international equities portfolio.
The remaining funding will come from trimming an international small-cap equity portfolio formerly run by AXA Rosenberg, parked in a BlackRock MSCI EAFE small-cap index fund since May. That fund will be cut to 18% of the international equities portfolio, Mr. Fitchet said.
The moves are aimed at diversifying the portfolio, Mr. Fitchet said.