San Francisco City & County Employees' Retirement System hired Barclays Global Investors to run $200 million in a new Russell 1000 Growth index fund. Funding will come from reducing a $420 million RCM active domestic large-cap growth equity portfolio; BGI already runs $415 million in a Russell 1000 Value index portfolio for the $11.8 billion pension fund. The system plans to search for one or more active domestic large-cap growth managers this summer to handle some or all of the remaining RCM portfolio. RCM, whose performance has suffered over the past 18 months, will be eligible to bid, said David Kushner, deputy director. A staff memo expressed confidence in the firm's ability to turn performance around. T.J. Deutz, RCM's head of sales and marketing, said the system has been "a fantastic client since 1988 and we continue to work very hard on their behalf to produce the performance they deserve."
Separately, the system committed up to $15 million to Hellman & Friedman Capital Partners V, a large buyout fund, and up to $10 million to Bunker Hill Capital Fund I, a middle-market buyout fund.
Angeles Investment Advisors consulted on the growth stock mandate; Portfolio Advisors is the private equity consultant.
