District of Columbia Retirement Board voted to keep Denver Investment Advisers, a domestic midcap growth manager, on its watch list until the end of the year for performance reasons. Denver Investment manages a $242 million portfolio for the $4.95 billion pension fund. In the second quarter, Denver underperformed its benchmark, the Russell Midcap Growth index, by 150 basis points. The manager also underperformed the median manager in the BARRA RogersCasey Growth/Mid Cap Universe for the three years ended June 30.
Representatives from Denver did not return phone calls by press time.
In a separate matter, Robin Pellish, the BARRA RogersCasey consultant for the fund, said custodian State Street Bank had informed BARRA RogersCasey that State Street had difficulty pulling assets from Malaysia, to which the fund has a small exposure through the Bank of Ireland.
Meanwhile, the House District of Columbia subcommittee passed a bill allowing the Treasury Secretary to name the PBGC trustee of the bulk of the District of Columbia Retirement Board's assets that the federal government will take over under last year's D.C. bailout law.
Under the Treasury Department's plan, the PBGC would consider subcontracting investment management services of those assets to the district's retirement board, according to a letter from Gary Gensler, assistant treasury secretary for financial markets, to Raymond Sneed, president of the DC Fire Fighters Association.