Chicago Park Employees' Annuity & Benefit Fund terminated RBC Global Asset Management from its $9 million active domestic small-cap core equity portfolio, recently released board meeting minutes show.
The $323 million pension fund's board approved the termination at its April 18 meeting, citing underperformance. From the termination's proceeds, the board approved adding about $4 million to an existing active domestic smidcap value equity portfolio managed by Ariel Investments, giving it about 8% of the total pension fund, or $26 million, and the remaining $5 million to Northern Trust Asset Management's existing passive domestic all-cap core equity portfolio, giving it $40 million in plan assets.
Leah Commisso, spokeswoman for RBC GAM, could not be immediately reached to provide comment.
As of Dec. 31, the actual allocations to domestic equities and international equities were 27.6% and 19.7%, respectively. Their respective targets are 28.5% and 20%.
Investment consultant Marquette Associates assisted.
Dean J. Niedospial, the pension fund's executive director, could not be immediately reached to provide further information.