US - The Arizona State Retirement System (ASRS) has sacked Goldman Sachs Asset Management (GSAM) and Batterymarch from $1.4bn and $140m mandates.
According to minutes from an investment committee meeting on 7 February 2007, ASRS chief investment officer, Gary Dokes, claimed the decision to terminate GSAM's Global Tactical Asset Allocation (GTAA) mandate was due to concerns over the manager’s "organization, business model, their investment process, and performance".
Some $400m of the $1.4bn GTAA mandate will be added to a current Bridgewater Associates GTAA mandate with the remaining $1bn allocated to a Barclay Global Investors (BGI) Index Fund until a new manager is selected.
Bridgewater Associates will also be asked to modify its investment guidelines to allow for tactical investments in commodities.
ASRS has also migrated $140m from Batterymarch to US equity small cap manager TimesSquare.
In the minutes from the meeting, Dokes said: “The ASRS lacks confidence in GSAM’s and Batterymarch’s ability to add value in the future.”
The fund’s other GTAA managers, Franklin Portfolio Associate (US mid-cap equity) and AXA Rosenburg (international small-cap) will be retained.
However, ASRS expressed concerned over the performance of Franklin Portfolio Associate and said it would be making alternative recommendations for the management of the assets if there was no improvement by 30 June 2007.
ASRS currently has its $26bn of assets divided into US equity (45%), international equity (18%), US fixed income (26%), real estate (6%) and private equity (5%).
GSAM declined to comment, while Batterymarch were unavailable for comment.
PP has analysed the accounts of the biggest pension consulting firms and recorded the turnover (revenue) in their most recent accounts. The full leaderboard is below…
UK defined benefit (DB) schemes have increasingly undertaken benefit reviews over the last four years resulting in an acceleration of scheme closures, Aon research finds.
Contributions are no longer sufficient to meet regular payments for three-quarters of small- to medium- sized defined benefit (DB) schemes, Buck analysis finds.