The joint investment committee of the two San Jose, Calif., pension funds recommended terminating Aberdeen Standard Investments from its two active frontier markets equity portfolios totaling about $38 million, said Prabhu Palani, chief investment officer.
The committee at its meeting Tuesday approved investment consultant Meketa Investment Group's recommendation to terminate the money manager due to organizational changes connected with last year's merger of Aberdeen Asset Management (the original manager of the portfolios) and Standard Life Investments. Aberdeen Standard Investments manages $17 million for the $3.6 billion San Jose Police & Fire Retirement Plan and $21 million for the $2.2 billion San Jose Federated City Employees Retirement System.
The portfolios fall within the pension funds' emerging markets equity allocations, which as of Dec. 31 were 4.8% for the federated city pension fund and 4.4% for the police and fire pension fund. How the proceeds will be reallocated has yet to be determined, Mr. Palani said.
The police and fire pension fund's board of administration will vote whether to approve the termination at its May 3 meeting, and the federated city pension fund's board will vote at its May 17 meeting.