Dallas Police & Fire Pension System terminated global equity managers Allianz Global Investors and Energy Opportunities Capital Management, recently released board meeting minutes show.
The $3 billion pension fund had $26.4 million invested with Allianz in its Global EcoTrends strategy and $26 million with EOCM as of June 30.
“Since inception, both investment managers achieved lower returns with higher volatility than the MSCI ACWI and are therefore detracting from performance while adding to the risk of the global equity portfolio,” said materials prepared for the Oct. 8 board meeting.
An Allianz spokeswoman declined to comment. An EOCM spokesman could not immediately be reached for comment.
In its termination recommendations, investment staff also considered the strategies’ structural fit and the ongoing restructure of the global equity portfolio, the materials said. It is expected the assets will temporarily be held in cash while further global equity changes are considered.
Kelly Gottschalk, executive director, could not be reached for additional information by press time.