University of Maine System's investment committee terminated GMO from its $25 million global asset allocation portfolio and reduced the target to the asset class in its $370 million managed investment pool of endowment funds.
The investment committee at its Dec. 1 meeting approved investment consultant NEPC's recommendation to terminate GMO due to performance, confirmed Tracy E. Elliott, vice president of finance and controller of the Bangor-based university, in an email.
Assets from the termination will be allocated to existing managers.
A GMO spokesman declined to comment.
Also, the committee approved allocation changes recommended by NEPC as the result of an asset allocation review, including reducing the GAA target to 7.5% from 15%.
Other changes were to increase targets to domestic large-cap equities to 22% from 17%, core fixed income to 9.5% from 7% and hedge funds to 7% from 6%, and reducing the target to domestic small/midcap equities to 6% from 7%.
Targets that remain unchanged are 10% each international equities and global equities; 7% each emerging markets equities and Treasury inflation-protected securities; 5% each absolute return fixed income and bank loans; and 4% international small-cap equities.
As of Sept. 30, the managed investment pool's actual allocation was 17.5% domestic large-cap equities, 14.5% international equities, 13.9% global asset allocation, 10.2% global equities, 7.1% domestic small/midcap equities, 7% emerging markets equities, 6.9% TIPS, 6.8% core fixed income, 6.2% hedge funds, 4.7% absolute return fixed income, 4.5% bank loans, 0.5% cash and 0.2% private equity.