Philadelphia Board of Pensions and Retirement is searching for an active international small-cap developed markets equity manager to run between $25 million to $50 million for the $4.3 billion pension fund.
Strategies must use the MSCI All Country World ex-U.S index as its benchmark. Manager-of-managers or fund-of-funds strategies will not be considered.
Christopher R. DiFusco, chief investment officer for the pension fund, said in an email that in a previous search for managers of this type, the board selected three managers — Mackenzie Investments, Strategic Global Advisors and AQR Capital Management — to receive initial allocations of $25 million to $50 million each.
While matters are progressing with Mackenzie and SGA, the board was unable to come to terms with AQR on "several key contractual matters" after negotiations. Mr. DiFusco did not provide details. As a result, a new search has been initiated for a third manager. Funding is coming from the equity portfolio.
AQR spokesman Mike Geller declined to comment.
The RFP is available on the city's procurement website. Proposals are due by 5 p.m. EDT on Nov. 2. Although Mr. DiFusco did not specify a selection date, he said that the board hopes to select the remaining manager "as soon as possible."
