Pompano Beach (Fla.) Police & Firefighters' Retirement System terminated Nuance Investments from its $12 million active domestic midcap value equity portfolio.
The $230 million pension fund's board approved the termination at its Dec. 19 meeting, recently released meeting minutes show.
The board approved the termination because Nuance had a "favored nations" clause with Morgan Stanley, parent company of the pension fund's former investment consultant, Graystone Consulting. The board in October had hired Southeastern Advisory Services as the new consultant following an RFP process.
According to board minutes, because the board changed its investment consultant, Nuance Investments wanted to double its fee to 70 basis points from 35 basis points. Southeastern Advisory recommended terminating the manager and parking the assets in an S&P 400 Value index fund and re-evaluating the portfolio "in a few months."
As of Sept. 30, the pension fund's actual allocation to domestic equities was 32.8%.
Debra Tocarchick, executive director, could not be immediately reached for further information.