Pontiac (Mich.) General Employees' Retirement System hired Piedmont Investment Advisors to run about $84 million in passive domestic midcap equities, recently released board meeting minutes show.
The $489 million pension fund's board approved hiring Piedmont at its April 24 meeting based on the recommendation of investment consultant Dahab Associates to switch its midcap equity portfolio to passive from active management.
The pension fund's board also approved terminating active domestic midcap equity managers Systematic Financial Management and Victory Capital Management, which ran about $42 million each. The minutes said Dahab recommended moving to passive management to save more than $300,000 in investment management fees and still earn benchmark-like returns.
As of Dec. 31, the pension fund's overall allocation to domestic equities was 52.8%.
Deborah Munson, executive director, could not be immediately reached to provide further information.