Kansas City (Mo.) Employees' Retirement System hired American Century Investments to run $65 million in active global equities, confirmed Richard Boersma, executive officer.
The $925 million pension fund conducted an invitation-only search last year following an asset-liability study that increased the target to global equities to 14% from 7%. Hexavest was the other finalist.
Funding will likely come from domestic large-cap equities. No managers will be terminated, Mr. Boersma said in a telephone interview.
The pension fund also hired Riverbridge Partners to run $20 million in active domestic smidcap growth equities. The pension fund conducted an invitation-only search as part of its routine competitive review. Riverbridge replaces Oberweis Asset Management, which ran an active domestic small-cap growth equity portfolio of similar size.
The change came because the pension fund expects a better risk-adjusted return coming from smidcap equities. Other finalists were Stephens Investment Management Group and William Blair & Co.
Investment consultant Hewitt EnnisKnupp assisted.
