Sacramento (Calif.) County Employees Retirement System next week will select two or three active international equity managers to run about $500 million in assets, said Jeffrey States, chief investment officer. The move stems from an increase in the $3.4 billion funds international exposure to 20% of total assets from 15% and a change from a regional approach to EAFE and emerging markets or EAFE-plus mandates. As a result, the fund is dropping Schroders and Morgan Grenfell as managers of respective Pacific Basin and European equity portfolios of $120 million each. Another $150 million will be taken from a passive European stock portfolio managed by Deutsche Asset Management; Deutsche continues to run one-quarter of the funds international equity assets in an indexed EAFE portfolio. None of the firms could be reached for comment. The fund plans to select two managers to run EAFE portfolios. The question is whether the fund will hire a separate emerging-markets manager as well or give that responsibility to the developed-markets managers. There are four finalists for the active EAFE mandates: Capital Guardian, Templeton, Delaware Investment Advisers and Bank of Ireland Asset Management. Cap Guardian and Templeton also are up for the emerging-markets mandate, as is City of London Investment Management.