Fresno (Calif.) City Retirement Systems moved its entire $1.04 billion domestic equity portfolio to a Russell 3000 index fund managed by Northern Trust Asset Management.
The systems' joint retirement board approved the change to its domestic equity portfolio at its meeting Tuesday, said Robert Theller, retirement administrator, in an email.
Investment consultant NEPC recommended the new, simplified domestic equity portfolio in order to "eliminate the need to monitor active managers, provide broad exposure to the U.S. equity markets, reduce fees and reduce the expected volatility of the domestic equity allocation," according to a memo to the board from Don Stracke, senior consultant, and Michael Miranda, senior consulting specialist, included with board meeting materials.
As part of the change, the board approved terminating active domestic small-cap equity managers Kennedy Capital Management and Eagle Asset Management, which ran $141 million and $130 million, respectively, as of Sept. 30.
The board also approved transitioning the assets of Northern Trust's current $765 million Russell 1000 index fund portfolio into the Russell 3000 index fund portfolio.
The retirement systems, which consist of the Employees Retirement System and the Fire and Police Retirement System, have a combined $3.9 billion in assets.
