The $2.6 billion pension fund conducted shortlist searches for three portfolios following the Oct. 4 board approval of a restructuring of its international developed markets equities portfolio. The restructuring is the result of a March 2017 asset allocation overhaul that included reducing the international developed markets equity target to 9% from 16% and the creation of an emerging markets equity target of 8%.
In November, the pension fund hired Northern Trust Asset Management to run about $77 million in passive international equities following the terminations of Grantham, Mayo, van Otterloo & Co. from a $114 million active value equity portfolio, State Street Global Advisors from a $79 million passive low-volatility equity equity portfolio and Mondrian Investment Partners from a $71 million active small-cap equity portfolio. Baillie Gifford, which ran a $199 million active growth equity portfolio, was reduced to $77 million and the pension fund shifted the allocation to Baillie Gifford's EAFE Pure Focus strategy from its ACWI ex-U.S. Alpha strategy.
For the international value equity search, the pension fund's board at its meeting Thursday selected First Eagle following finalist interviews. The other finalists were Artisan Partners and Hexavest.
A shortlist search for the third portfolio, an active international small-cap equity portfolio of about $25 million, will begin in March, with finalist interviews scheduled for April and a decision expected shortly thereafter.
Investment consultant Meketa Investment Group assists with all manager searches.