Chicago Metropolitan Water Reclamation District Retirement Fund hired O'Shaughnessy Asset Management to run 1.25% of plan assets, or about $14.2 million, in active large-cap value equity, confirmed Susan Boutin, executive director.
The $1.1 billion pension fund issued an RFP in December for an emerging manager. The other finalists were SKBA Capital Management, Chicago Equity Partners, Paradigm Asset Management, First Fiduciary Investment Counsel and Great Lakes Advisors.
Funding comes from the termination of Northpointe Capital, which managed $17 million in the same strategy. Ms. Boutin said in a telephone interview that Northpointe's performance was good, but the amount violated the pension fund's investment policy because the asset amount made up too large of a percentage of the assets under management in Northpointe's strategy. The remainder was parked in a State Street Global Advisors index fund.
As of Dec. 31, Northpointe had $864 million in total AUM, with $59.6 million of that in its large-cap value equity strategy.
