Chicago Metropolitan Water Reclamation District Retirement Fund terminated LSV Asset Management from its $71 million active domestic large-cap value equity portfolio.
The $1.4 billion pension fund reallocated the assets to an existing passive domestic large-cap equity portfolio managed by State Street Global Advisors, giving that portfolio a total of about $189 million.
The pension fund terminated LSV due to performance concerns, said Brian A. Gillespie, financial analyst at the pension fund.
Marisa Rosenblatt, senior marketing analyst and client service analyst at LSV Asset Management, could not be immediately reached for comment.
Separately, the pension fund placed four managers on watch, Mr. Gillespie said.
The UBS Trumbull Property Fund, an open-end core real estate fund managed by UBS Asset Management in which the pension fund has $66 million invested, was placed on watch for organizational changes, he said.
Also placed on watch were Ariel Investments, for its $84 million active domestic midcap value equity portfolio, Hexavest for its $73 million active international large-cap equity portfolio, and Matarin Capital Management for its $39 million active domestic small-cap core equity portfolio, all due to performance concerns.
Adam Hodge, Ariel Investments spokesman; Robyn Tice, Hexavest spokeswoman, and Marta Cotton, principal and director of client development at Matarin Capital, could not be immediately reached for comment.
As of Dec. 31, the actual allocation to domestic equities, international equities and real estate were 41.4%, 22.6% and 8.4%, respectively; their respective targets are 41%, 22% and 10%.
Investment consultant Marquette Associates assisted.
