San Bernardino County (Calif.) Employees' Retirement Association terminated Mondrian Investment Partners from its $130 million active emerging markets equity portfolio and MacKay Shields from its $45 million active high yield fixed-income portfolio.
The $13.1 billion pension fund's board approved the terminations at its Dec. 1 meeting, SBCERA spokeswoman Olivia Applegate said in an email.
The pension fund's investment committee had recommended the termination of Mondrian due to performance concerns, and assets will be reallocated across the portfolios of active emerging markets growth equity managers Wasatch Global Investors and William Blair Investment Management, which were hired in December 2021 to run about $100 million each.
James F. Brecker III, head of global client service and business development, and Andrew Miller, managing partner and CIO, emerging markets equities at Mondrian Investment Partners, could not be immediately be reached for comment.
As of Sept. 30, SBCERA's actual allocation to international equities was 9.1%; the target is 13%.
The pension fund's investment committee had recommended the termination of MacKay Shields due to portfolio manager turnover. The webcast did not provide further information on how the assets will be reallocated.
As of Sept. 30, SBCERA's actual allocation to U.S. credit strategies was 11.8%; the target is 13%.
