North Dakota State Investment Board, Bismarck, hired William Blair as an active international equity manager, said David Hunter, executive director and chief investment officer of the North Dakota Retirement and Investment Office, in an e-mail.
William Blair will replace Capital Group, which managed $445 million in a similar strategy and is being terminated because of personnel changes, a desire for increased transparency in regard to individual portfolio manager performance and disappointing performance in recent years, Mr. Hunter wrote.
A Capital Group spokesman could not immediately be reached for comment on the firm's termination.
The firm was put on watch by the board in August due to an announcement that three of the strategy's seven portfolio managers would no longer be managing the strategy. The board launched a search for a potential replacement manager in November; an RFP was not issued.
The other finalist was Baillie Gifford.
Separately, the board put J.P. Morgan Asset Management on watch for a $120 million mortgage-backed securities strategy because of recent personnel changes.
Earlier this month, Henry Song, co-portfolio manager on the strategy, and Mark Jackson, an investment-grade credit portfolio manager, resigned from the firm for undisclosed reasons.
“While these departures are unfortunate, it's very important to note that our Columbus-based value-driven team has a strong pool of talent that includes 23 portfolio managers with (an) average 23 years of industry experience,” a J.P. Morgan spokeswoman said in an e-mail. “It is a very strong team with a deep bench of talent, which allows us to ensure continued, consistent coverage on our value-driven strategies and we will continue to bolster our bench through targeted hiring and internal promotions as appropriate.”
Chris Nauseda, a co-portfolio manager on the firm's core bond fund, is also set to retire from J.P. Morgan in July, said materials prepared for last week's board meeting.
The retirement and investment office oversees the $10.8 billion investment board, which includes pension and insurance assets.