Connecticut Retirement Plans & Trust Funds, Hartford, allowed a five-year contract with Artio Global Management to expire without renewal, confirmed David Rivera, communications director for the state treasurer's office.
The contract expired Sept. 30.
As of Aug. 31, Artio had managed $492.2 million in a core developed markets international stock fund, Mr. Rivera wrote in an e-mail.
“Consistent with required procurement processes, contracts for money managers typically expire within five years,” he wrote. “As a contract is approaching expiration, the treasurer considers in consultation with (the pension system's) chief investment officer whether to extend the contract, engage in a new competitive search, or simply let the contract expire.”
State Treasurer Denise Nappier is principal fiduciary of the $23.9 billion Connecticut system, which consists of six state pension funds and eight state trust funds.
The pension system's review of managers includes “performance, risk management, organizational structure and strategic fit,” Mr. Rivera wrote. “All of these factors were considered with respect to Artio.”
The money managed by Artio has been assigned to a passive portfolio within the pension system's developed markets stock fund, he wrote. Further details were unavailable.
Next year, the pension system will conduct an asset-liability study, Mr. Rivera wrote, and “additional restructuring to the developed markets stock fund may take place as a result of the study.”
“Until that time, the treasurer does not anticipate making any further changes in the manager lineup of the developed markets international stock fund with the exception of the need to address an unforeseen market or money manager-related event,” he added.