Pennsylvania Municipal Retirement System, Harrisburg, is retaining active domestic small-cap value equity manager Smith Graham & Co. Investment Advisors, which runs about $45 million, said spokeswoman Carey Miller.
The $3.2 billion pension fund conducted a search in the third quarter due to organizational changes. Smith Graham was invited to rebid, Miller said.
While the pension fund's investment committee recommended Channing Capital Management as a replacement manager, the pension fund "will continue to assess the ownership change of Smith Graham and will make a decision at a later date," Miller said. Loop Capital announced last year it was acquiring Smith Graham.
Other finalists were Ariel Investments, Kennedy Capital Management and Systematic Financial Management.
As of Sept. 30, the pension fund's actual allocation to domestic equities was 32.2%; the target is 32.5%.
Investment consultant Marquette Associates assisted.
