Nebraska Investment Council, Lincoln, hired Arrowstreet Capital to manage about $540 million in active global core equities and Wellington Management to run about $180 million in active global small-cap equities, said Michael Walden-Newman, state investment officer.
The council, which manages $22 billion in retirement plan and endowment assets, made the hires to conclude a year-long review of its $1.8 billion global equity portfolio.
As a result, the council terminated active global core equity managers Acadian Asset Management, which ran about $278 million, and Mondrian Investment Partners, which ran about $274 million as of Dec. 31. The terminations are not related to performance, Mr. Walden-Newman said. Their strategies did not fit what the council was looking for following the review, Mr. Walden-Newman said.
The Arrowstreet and Wellington allocations were funded from terminations and rebalancing.
Also as a result of the review, incumbent manager BlackRock will now manage $450 million, or 25% of the global equity portfolio, in passive global equities; IronBridge Capital Management will now run $270 million, or 15%, in active global core equities; and MFS Investment Management will now run $360 million, or 20%, also in active global core equities.
As of Dec. 31, BlackRock ran $381 million; IronBridge, $296 million; and MFS, $291 million.
Investment consultant Aon Hewitt Investment Consulting assisted.