US - The board of the Fresno County Employees Retirement Association (FCERA) approved a search for a US large-cap growth manager after it terminated INTECH and a search for a US small-cap active equity manager to replace Brandywine.
At a board meeting last week, the board said it would terminate INTECH from its US$144m portfolio after it underperformed its benchmark by an annualised six basis points in the five years ended December 31 and 68 basis points in the past three years.
INTECH co-chief executive Jennifer Young asked the board for more time, saying the strategy has performed well over a longer ten to 15-year time horizon.
The board also showed concern over the departure of the firm's former co-chief investment officer Cary Maguire in 2008 and Jason Greene, formerly head of the Florida Research Team.
Separately, the firm's co-founders Robert Garvy, currently chairman and CEO, and Robert Fernholz, chief investment officer and chairman of the investment committee are due to retire in 2011.
Young said Maguire's resignation "was entirely unforeseen" and purely for personal reasons, while Greene, who did not work in a portfolio management position, left the firm to go back into academia.
She said in the firm's 22 year history, only two investment professionals have resigned. "This puts us in rarefied space in this industry with respect to the kind of organisational stability that we have," Young told the board.
Regardless, the board said it would terminate INTECH, the quantitative management subsidiary of Janus Capital Group, once a replacement manager is found.
Separately, FCERA's general consultant Wurts & Associates will conduct a search for an active small-cap equity manager to replace Brandywine Global Investment Management, which was fired in October from a $100m portfolio for poor performance. (Global Pensions; October 9, 2009)
*Updated with correction
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