Florida State Board of Administration, Tallahassee, placed INTECH Investment Management, which runs $1.38 billion in active global equity, on watch due to changes in the client relationship structure.
The action was noted in a report released today and prepared by investment consultant Mercer for the FSBA.
The report also noted the FSBA's decision to put Pacific Investment Management Co. on watch. (Pensions & Investments first reported the action in the Feb. 3 issue.)
PIMCO runs $1.88 billion in core fixed income for the Florida Retirement System's defined benefit plan and $245 million in core-plus fixed income for the FRS's 401(a) plan. The firm was placed on the watchlist because of the departure of CEO and Co-Chief Investment Officer Mohammed El-Erian, announced Jan. 21.
“As with any staffing or organizational change, we do follow adjustments such as these to ensure the investments continue to perform,” John Kuczwanski, communications manager, said in an e-mailed response to questions.
“The watch list is one tool used by the SBA in monitoring external investment managers, and its contents alone would not result in the termination of a manager, but would assist in evaluation to do so if necessary.”
Epoch Investment Partners was removed from watch after resolving concerns about its organizational structure. Epoch, which was placed on watch in 2012, manages $410 million in active international developed markets core small-cap equities.
Mercer recommended the changes.
FSBA oversees a total $176 billion in assets, including $143.1 billion in FRS defined benefit assets and $8.6 billion FRS 401(a) assets.