US - The Ohio Bureau of Workers' Compensation (BWC) has terminated Fifth Third Bank from its manager line up.
Ennis Knupp, which is currently conducting a review of the performance of the fund’s 144 fund managers, confirmed that over the four-plus year period that Fifth Third managed assets for BWC in the large cap growth strategy, the investment declined approximately US$9.7m.
Fifth Third has been instructed to liquidate the remaining $50m in the account.
“Though Fifth Third is attempting to improve its performance, we cannot ignore the historical track record of underperformance over the past five years,” BWC interim administrator/CEO Tina Kielmeyer said.
“By terminating this investment, we are upholding our fiduciary responsibility to the injured workers and employers of Ohio who expect us to responsibly manage their monies.”
Additionally, fundamental changes in the portfolio management approach led Ennis Knupp to recommend that Fifth Third be terminated.
As of 31 May, the market value of BWC’s investment was $49.2m. Aggregate losses of approximately $10.8m were realised and written off in prior fiscal years.
BCW’s investments are currently the subject of an investigation. Thomas Noe, a coin dealer and Republican donor, is being investigated for several million of dollars missing from the bureau's coin fund.
The fund has also tendered for an investment consultant. Callan Associates has been the appointed consultant to the fund since 1996.
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