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
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
This week's top stories were the DWP giving the green light to CDC and TPR granting extensions for 11 master trust authorisation applications.
Susan Martin says building strong foundations for business are the only way forward as the pensions industry is radically shaken up
The Pensions Regulator (TPR) has granted Now Pensions a six-week extension for its master trust authorisation application after the 31 March deadline, PP can reveal.