New Orleans City Employees Retirement System, with $375 million in assets, has a list of 25 finalists in its search for a convertibles manager to run $15 million to $20 million, said Jerry Davis, chairman. Consultant Morgan Stanley Dean Witter recommended the move into the asset class. Funding likely will come from the plans large-cap equity portfolio. A decision is expected by the end of August.
Also, the fund terminated Denver Investment Advisors $10 million active small-cap domestic value portfolio due to concerns about personnel turnover at the firm. The portfolio was turned over to recently hired active international equity manager Waddell & Reed. Ken Penland, Denver chairman, said the fund had a legitimate concern with its turnover and that Denver was disappointed with its performance.