Allegheny County Employees Retirement System, Pittsburgh, terminated its investments with emerging managers EmStone Partners and Etho Capital due to performance concerns.
The $968 million pension fund’s board approved the terminations at its Feb. 20 meeting, a webcast of the meeting showed.
The pension fund’s board approved liquidating its $5 million investment in an active domestic core fixed-income mutual fund managed by EmStone Partners and its $2 million investment in the Etho Climate Leadership ETF, citing underperformance in both strategies. Assets will be reallocated to cash.
Officials at both firms could not be immediately reached for comment.
As of Sept. 30, the pension fund’s actual allocations to domestic equities and core fixed income were 18% and 13.7%, respectively; their respective targets are 16.5% and 12.5%.
Investment consultant Mariner Institutional assisted.
