US - The $31bn Minnesota State Board of Investment (MSBI) has terminated the mandates of CIC Asset Management and Standish Mellon Asset Management.
Howard Bicker, executive director of the MSBI, said that both managers lost their mandates on performance grounds. Boston based Standish was acquired by Mellon in July, and ran $300m in bonds for the MSBI.
The loss of the MSBI mandate is a significant blow for CIC. The Los Angeles based fund manager had a $90 US equities mandate with the board, which accounted for over a quarter of the $343m in assets that it has under management.
Bicker said that money from the terminated managers would either be handed to the MSBI's incumbent managers or moved to cash. The MSBI, which manages the money of eight of the state’s pension funds, has no other changes planned, he added.
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