Chicago Metropolitan Water Reclamation District Retirement Fund hired EARNEST Partners and Aristotle Capital Management to run a total of about $69 million in active international large-cap developed markets equities.
The $1.4 billion pension fund's board approved the hirings at its Nov. 30 meeting, recently released meeting minutes show.
EARNEST Partners will manage about $46 million, and Aristotle Capital will run about $23 million, pending successful contract negotiations.
Funding comes from a passive international developed markets large-cap equity portfolio managed by State Street Global Advisors, which had managed the passive portfolio since the termination of active international developed markets equity manager Hexavest in July 2020 due to performance concerns.
The pension fund had issued an RFP for an active manager in August 2021 and its board approved hiring GQG Partners in February 2022. However, contract negotiations with the firm reached "an impasse," according to July 28 board meeting minutes, and the pension fund restarted the search.
As of Sept. 30, the pension fund's actual allocation to international equities was 18.5%; the target is 20%.
Investment consultant Marquette Associates assisted.
Brian A. Gillespie, the pension fund's investment officer, and James E. Mohler, executive director, could not be immediately reached for further information.