Chicago Policemen's Annuity and Benefit Fund switched its active large-cap core equity portfolio to a passive approach managed by Northern Trust Global Investments.
At a board meeting Thursday, trustees of the $3 billion fund accepted the recommendation of consultant NEPC to terminate active U.S. large-cap core equity managers UBS, which ran $103 million, and Piedmont Investment Advisors, which managed $39 million, John J. Gallagher Jr., executive director, wrote in an e-mail.
“The board has taken this action to improve portfolio efficiency overall as well as to assist it in its on-going efforts to manage negative cash flow situations that arise due to underfunding pressures and is not related to the firms' performance,” Mr. Gallagher wrote in the e-mail.
The active large-cap core assets will be invested in the Northern Trust Collective Daily U.S. Market Cap Equity Index Fund, Mr. Gallagher said.
The amount managed in the market-cap index fund and other strategies by NTGI for the police pension fund could not be learned. Mr. Gallagher and Sam Kunz, the fund's chief investment officer, could not be reached for further details.