Manchester (N.H.) Employees’ Contributory Retirement System hired Kabouter Management to run $10 million in active international small-cap equities, said Gerard Fleury, executive director, in an e-mail.
The $198 million pension fund conducted a shortlist search earlier this year following the increase of its target to international equity to 15% from 9% in April as a result of an asset allocation review.
Other finalists were Fidelity Institutional Asset Management and Segall Bryant & Hamill.
Funding comes from the termination of current international core equity manager Causeway Capital Management from its $8.5 million portfolio, and a partial redemption of $1.5 million from a global tactical asset allocation strategy managed by Mellon Capital Management, leaving it with $14.5 million. The Causeway termination was due to the pension fund deciding to move to small-cap or midcap equities.
Investment consultant NEPC assisted.