Large-Cap
The plan will receive replacement options at its Sept. 7 board meeting.
The 529 plan added a domestic large-cap growth equity strategy to its watchlist last month because of underperformance compared to its benchmark for the quarter, one-, three- and five-year periods ending March 31.
Termination shifts large-cap growth assets to a passive allocation in anticipation of investing in mid-cap equities for the first time.
Plan is seeking one to three global ex-U.S. equity managers and agreed to restructure its opportunistic and alternative fixed-income portfolios this month.
Terminated firm had been placed on watch for performance reasons last month.
Consultant recommended small-cap value manager search as part of a U.S. equity structure review presented last month.
Plan’s consultant will present report on the $8 million search in June or July.
The plan placed a firm on watch for failing to meet performance criteria and eliminated its REITs managers to reduce overall volatility within its real estate portfolio.
Plan will ultimately move an approximately $300 million mandate to a more focused strategy from its incumbent.
Commitment represents a new relationship for the plan.
