Sonoma County Employees' Retirement Association, Santa Rosa, Calif., hired Parametric Portfolio Associates to manage a defensive equity overlay strategy, said Julie Wyne, the pension fund's administrator, in an email.
The board of the $2.5 billion pension fund approved the hire Thursday.
Ms. Wyne said the overlay strategy is eventually going to be 3% of the pension fund's assets, which is about $75 million.
James Failor, senior investment officer, added in a separate email that the overlay strategy utilizes S&P 500 index options.
The program will be implemented over three months. Ms. Wyne said $25 million of equity exposure will be put in the overlay strategy initially.