Springfield (Mo.) Police Officers' & Firefighters' Retirement System hired ArrowMark Partners and Systematic Financial Management as active domestic small-cap equity managers to run a total of $23 million.
The $455 million pension fund conducted a shortlist search to provide further diversification in the fund’s domestic equity portfolio, said Janell Manley, administrative director, in an email.
AllianceBernstein was the other finalist. ArrowMark will run a growth portfolio, while Systematic will run a value equity portfolio, each managing about $11.5 million. Funding comes from a reduction in State Street Global Advisors’ passive domestic equity portfolios.
As of Sept. 30, the actual allocation to domestic equities was 23%, according to the pension fund’s most recent available investment report. As of that date, SSGA was the pension fund’s sole domestic equity manager with an $84 million passive domestic large-cap equity portfolio and a $21 million passive domestic small-cap equity portfolio.
Investment consultant Segal Marco Advisors assisted.