US - The $12bn San Francisco Employees Retirement System (SFERS) has terminated New-York based Paradigm Asset Management's large cap value mandate.
Carl Wilberg, public equities manager at the fund, said that Paradigm - who was benchmarked against the Russell 1000 index - was dropped from the $162m mandate on performance grounds.
They have consistently underperformed for the past four years, he said.
SFERS is also initiating a search for an alternative investment consultant in October, according to Wenling Chin, securities analyst at the fund. A new consultant should be in place after the November 27 board meeting, Chin added. The SFERS has $1.4bn committed to alternatives, and the current consultant Cambridge Associates has been invited to reapply for the position.
Chin also revealed that the fund has invested an extra $20m in the Duke Street Capital V Fund. Prior to the funding increase, the SFERS had already committed $20m to the international buyout fund.
By Geoffrey Ho
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers