Orange County Employees Retirement System’s board is expected to decide Monday whether it will approve a new domestic equity structure with a 45% passive commitment to the Russell 1000 index, according to the agenda for the meeting. The investment committee voted to recommend the change in February.
The committee also has recommended, based on a performance review, that the board of the $4.4 billion Santa Ana, Calif., fund terminate STI Capital Management, which runs a $260 million large-cap growth portfolio; place three firms on its watch list — Siphron, which runs $73 million in large-cap growth, Delaware International, $187 in international bonds, and Kennedy Associates, $148 million in bonds — and transfer assets from Delaware Investment to Dodge & Cox to equally weight the two managers.The board will decide these and other issues at the meeting.
The investment committee also recommended the board terminate an actively run $256 million EAFE portfolio managed by Schroder Capital and approve a search for two additional international equity managers for mandates of undetermined sizes and styles.
The board also is expected to ask staff to visit Fidelity Management, Glenmede Trust, Sit/Kim International and Dresdner RCM as part of a search for another international equity manager and to recommend at least three as finalists.
It also is expected to decide whether to select five managers for on-site staff due diligence in the fund’s non-core international equity manager search and recommend at least three finalists.
