US - The $747m Ohio State Highway Patrol Retirement System (HPRS) has put managers Dresdner RCM Global Investors and Navellier & Associates on its watch list for performance reasons.
Dick Curtis, the fund's executive director, said that the fund had a variety of concerns about Dresdner, most notably its performance. Dresdner, which runs an $80m large cap growth mandate for the fund, has been on the HPRS' watch list since the second quarter and Curtis said that that would remain the case until the end of the year.
Another HPRS concern is the recent takeover of Dresdner by Allianz. Curtis also said that the fund had been experiencing contractual difficulties with Dresdner. The contract with Dresdner states that at least 40% of it’s HPRS business has to go through the fund's broker, Lynch, Jones & Ryan, a target Dresdner has missed, Curtis said.
The HPRS is also set to conclude an asset liability study (ALS) in November. The results of the ALS could lead to mandates being put out to tender, Curtis said. Callan Associates is assisting the fund with the ALS.
Curtis also revealed that the HPRS had scrapped its search for a disability benefits consultant, and will instead keep that work in-house. The decision to keep the work in-house comes after the fund had rejected bids as it believed that they were too expensive.
By Geoffrey Ho
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