Vermont Pension Investment Committee, Montpelier, will conduct an invitation-only search for a domestic large-cap equity manager to run about $117 million, said Stephen Rauh, chairman of the committee, in an e-mail.
The committee, which oversees the $3.9 billion Vermont State Retirement Systems, approved the search at its meeting Oct. 28 following its decision to replace T. Rowe Price Group, which manages an enhanced index domestic large-cap equity strategy.
Active, passive and enhanced strategies will all be considered, Mr. Rauh said. He did not provide timing for the search.
T. Rowe Price will continue managing its portfolio until a replacement is found and is being replaced due to “modest performance net of fees,” Mr. Rauh said.
Bill Benintende, T. Rowe Price spokesman, declined to comment.
Separately, the committee selected GAM USA and Loomis Sayles & Co. as finalists in an invitation-only search for an unconstrained fixed-income manager to run about $254 million. The managers will make presentations at a special committee meeting yet to be scheduled.
The selected manager would replace Pacific Investment Management Co. due to personnel changes, Mr. Rauh said. PIMCO founder and Chief Investment Officer William H. Gross resigned from the firm on Sept. 26.
PIMCO currently manages the most assets of any of the pension fund's managers, Mr. Rauh said, running a total of about $742 million, or 19% of total assets.
The potential change is being considered to “reduce VPIC's overall business risk exposures to PIMCO,” Mr. Rauh said. The committee plans to retain PIMCO in its two other portfolios: the $254 million domestic core-plus fixed-income portfolio and the $234 million All Asset strategy portfolio.
Investment consultant NEPC is assisting with all searches.
