San Jose (Calif.) Police & Fire Department Retirement Plan and San Jose Federated City Employees Retirement System hired Northern Trust Asset Management to run a combined $37 million in passive domestic small-cap value equities, said Daryn Miller, interim chief investment officer for both plans, in an email.
The $3.5 billion police and fire pension fund is investing $21 million, and the $2.2 billion city employees pension fund is investing $16 million in a Northern Trust Russell 2000 Value index fund following a review of the pension funds' small-cap portfolios, which were previously 100% active. The pension fund said the change to a 50% active/50% passive portfolio is to reduce fees.
Funding for the police and fire pension fund portfolio comes from the pension fund's termination of RBC Global Asset Management from a $42 million active domestic small-cap core equity portfolio; the police and fire pension fund is also adding a $21 million active domestic small-cap value equity portfolio managed by Cove Street Capital.
Funding for the city employees pension fund portfolio comes from reducing Cove Street Capital's active domestic small-cap value equity portfolio by $16 million, leaving it with $16 million.
Mr. Miller would not elaborate on the reason for RBC Global's termination.
