Fort Worth (Texas) Employees’ Retirement Fund hired Vaughan Nelson Investment Management and Jennison Associates to run $50 million each in active domestic all-cap equity strategies, confirmed Robert Hulme, interim executive director/chief investment officer.
Cramer Rosenthal McGlynn, Epoch Investment Partners, Morgan Stanley Investment Management, Primecap, Westwood Management and William Blair were also finalists.
The board for the $2 billion pension fund initially expected to allocate $30 million, but decided at the Jan. 22 board meeting to shift its style box strategies in the domestic large-cap equity allocation to two all-cap managers.
When negotiations are complete, funding will come from the termination of value strategies managed by Cooke & Bieler and MFS Investment Management, and a growth strategy managed by Westfield Capital Management. As of Dec. 31, the value managers ran about $34 million each, while Westfield ran $73 million. What is currently the large-cap allocation will become the two all-cap strategies with the remainder going to an enhanced S&P 500 index strategy. A manager has not been selected for the enhanced index strategy.
Separately, the board is expected to announce a new executive director/CIO at its Feb. 19 board meeting.
