Philadelphia Board of Pensions and Retirement terminated Capital Group from a $65 million active international large-cap equity portfolio managed for the $8.6 billion Philadelphia Public Employees Retirement System.
The board’s investment committee at its Sept. 26 meeting cited underperformance as the reason for termination, recently released meeting minutes show. A spokeswoman for Capital Group could not be immediately reached for comment.
Proceeds from the termination were reallocated to an existing passive international equity portfolio managed by Northern Trust Asset Management, giving that portfolio just over $1.3 billion in assets.
Christopher DiFusco, chief investment officer, said in an Oct. 28 email that the board has no plans to conduct a search for an active replacement.
As of Aug. 31, the pension fund’s actual allocation to international equities was 23.7%; the target is 20%.
