Chicago Metropolitan Water Reclamation District Retirement Fund terminated two managers and revised its fixed-income target, nearly doubling the assets in passive strategies, said Susan Boutin, executive director.
The $1.2 billion pension fund’s board terminated large-cap core equity manager Herndon Capital Management because of organizational changes at the firm, Ms. Boutin said. The pension fund had $21.3 million invested with Herndon.
Assets will be transferred to Decatur Capital Management, which invests $33.3 million for the pension fund in a similar strategy.
Separately, the pension fund terminated core-plus fixed-income manager Pioneer Investments because of the changes to the fixed-income portfolio.
At its board meeting Wednesday, the pension fund maintained the 35% fixed-income target but revised its components: passive fixed income was raised to 16% from 8.75%; active core-plus fixed income was reduced to 8% from 17.5%; active global fixed income was reduced to 7% from 8.75%; and a new 4% target to active core fixed-income was approved.
In June, the pension fund hired Garcia Hamilton & Associates as its first core fixed-income manager.