Spokane (Wash.) Employees' Retirement System placed active domestic midcap value equity manager Sterling Capital Management on watch due to performance concerns.
The $315 million pension fund's board at its Sept. 7 meeting approved placing the manager on watch for its $6 million portfolio because of performance being "in violation of policy parameters," recently released meeting minutes show.
"While recent performance for the fund has been strong," the minutes say, "performance for the prescribed policy period came in slightly below benchmarks."
John W. McAuley, managing director and head of distribution and marketing at Sterling Capital Management, could not be immediately reached for comment. Sterling Capital Management also runs $25 million in active domestic core fixed income for the pension fund.
As of Aug. 31, the actual allocation to domestic equities was 31.4%; the target is 32%.
Investment consultant Hyas Group assisted.
Phillip Tencick, retirement director, could not be immediately reached for further information.