The $208 million Worcester (Mass.) Retirement System has narrowed an international equity search to two finalists, the winner likely being the one that can come up with best way of mitigating the cost of exiting the EAFE manager the system is replacing.
James A. DelSignore, city auditor and trustee, said the finalists are Seligman Henderson - a joint venture between J&W Seligman and Henderson Administration Group - and Boston Co. Both are fairly close in terms of selection criteria.
The new manager would replace BEA Associates, which runs an $8 million active EAFE mandate in a commingled fund. BEA will charge a 125 basis-point exit fee unless the system takes the securities in kind. The system hopes to select a manager that can switch the account with the lowest cost.
