Dallas Employees' Retirement Fund terminated Redwood Investments from a $30 million active domestic small-cap growth equity portfolio.
The $3.6 billion pension fund's board approved the termination at its Sept. 12 meeting, recently released meeting minutes show.
In a discussion sheet included with Sept. 12 meeting materials, staff recommended termination, saying the portfolio had underperformed the Russell 2000 Growth index for all time periods beginning with the hiring of the manager in the fourth quarter of 2016, ending in August. The minutes did not disclose how the manager's assets are being reallocated.
Scott Kearney, head of distribution with Redwood Investments, said, "We appreciate our long relationship with Dallas and respect their decision. The market has started to reward our process and yield positive results. We are confident in our ability to perform going forward."
As of June 30, the actual allocation to domestic equities was 11.8%; the target is 12.5%.
