Searches and Hires

Cincinnati Retirement goes passive for international large-cap equities

Cincinnati Retirement System hired Northern Trust Asset Management to run about $238 million in passive international large-cap core equities, said Paula Tilsley, executive director, in an email.

The $2.3 billion pension fund funded the hiring by terminating active international large-cap equity managers Harding Loevner and Mondrian Investment Partners, which managed a $121 million core portfolio and $117 million value portfolio, respectively. Ms. Tilsley said the terminations were due to the pension fund's move to passive from active management in its domestic and international equity portfolios and not due to performance.

For the pension fund, it is the second termination of Mondrian Investment Partners in 2018. The board on Feb. 1 voted to terminate Mondrian from a $116 million active emerging markets equity portfolio and invest the proceeds in two mutual funds managed by Dimensional Fund Advisors, split evenly between a core fund and value fund. Dimensional already was managing a $118 million active international small-cap value equity portfolio and $75 million active emerging markets small-cap equity portfolio for the pension fund.

Paul M. Ross, president of Mondrian Investment Partners (U.S.), could not be immediately reached for comment.

As of March 31, the pension fund's international equity allocation (which includes emerging markets) was 23.8%; the target is 23%.

Investment consultant Marquette Associates assisted.