Sonoma County Employees' Retirement Association, Santa Rosa, Calif., will terminate Franklin Templeton from its $150 million active international equity portfolio, said Steven Marsh, senior investment officer.
The $2.8 billion pension fund's board recently approved the termination due to underperformance and will decide at its Nov. 19 meeting how to reallocate the assets, Mr. Marsh said.
He said the board has already decided not to seek another active manager and will likely reallocate assets to existing international equity managers Arrowstreet Partners, which manages a $182 million active portfolio, and State Street Global Advisors, which manages a $196 million passive portfolio.
Mr. Marsh said the assets are still being held in Franklin Templeton's portfolio until the reallocation decision is complete.
Franklin Templeton spokeswoman Rebecca Radosevich could not be immediately reached for comment.
Investment consultant Aon Investments USA is assisting.