University of Maine System, Bangor, hired Walter Scott & Partners to run about $8 million in active global equities for the system's $27 million pension fund, said Tracy E. Elliott, vice president of finance and controller, in an email.
The system conducted a shortlist search following the creation of a new 30% allocation to global equities for the pension fund in March. Investment consultant NEPC had recommended the creation of the new allocation to simplify the portfolio, reduce fees and improve liquidity, according to March 11 investment committee meeting materials.
The new target was partially funded by eliminating the 8% target to domestic large-cap equities, 7% target to international equities, 4% target to domestic small/midcap equities and 3% target to emerging markets small-cap equities. The rest was funded in March by the reduction of global asset allocation to 8% from 27.5%.
Other finalists were active manager Fiera Capital and passive manager State Street Global Advisors. Equity managers being terminated are active international equity manager Morgan Stanley Investment Management, passive domestic small-cap equity manager SSGA and passive domestic equity manager Vanguard Group. The three managers manage a total of about $8 million.