Clearwater (Fla.) Employees Pension Fund hired Northern Trust Asset Management to run about $30 million in passive domestic large-cap growth equities.
The $1.1 billion pension fund's board approved the hiring at its Oct. 12 meeting, a webcast of the remote meeting showed.
The pension fund staff and investment consultant CAPTRUST Financial Advisors had recommended further diversifying the pension fund's large-cap growth portfolio to "reduce the current risk and volatility" of the portfolio, Jay Ravins, the city's finance director, said in the meeting.
Up to that point, the pension fund's sole domestic large-cap growth manager was Voya Investment Management, which was running $140 million in an active portfolio.
Mr. Ravins said Voya's portfolio has been underperforming and that the pension fund may consider a search for a replacement if there is not improvement in the next couple of quarters. The passive portfolio enables the pension fund to transfer assets if a termination is necessary, Mr. Ravins said.
Voya spokesman Christopher Breslin declined to comment.
As of Dec. 31, the overall actual allocation to domestic equities was 41.4%, according to the most recent available data.
CAPTRUST Financial Advisors assisted.
Mr. Ravins could not be immediately reached for further information.
