Louisiana Firefighters' Retirement System, Baton Rouge, reduced its allocations to active domestic smidcap equity managers QMA and Rothschild & Co. as it reevaluates the asset class.
The $1.8 billion pension fund's board voted at its Nov. 12 meeting to reduce the managers' combined $125 million portfolio by one-third and move the assets to a domestic smidcap equity index fund, recently released meeting minutes show. The manager of the index fund was not disclosed.
Investment consultant NEPC said in an analysis to the board that smidcap equity overall has been in a "continuous style cycle that has experienced an ongoing negative impact, meaning underperformance compared to its benchmark," according to the minutes.
As of Nov. 30, the system's actual allocation to domestic equities was 23.9%; the target is 22.5%.
Chief Investment Officer Michael Becker could not be immediately reached for further information.