San Mateo County Employees' Retirement Association, Redwood Shores, Calif., selected Barclays Global Investors to manage a $298 million domestic large-cap enhanced index equity portfolio and Goldman Sachs Asset Management to run an $80 million U.S. small-cap enhanced index equity portfolio for the $1.4 billion pension fund.
Funding for the large-cap portfolio will come from a $597 million Russell 1000 index fund already managed by BGI. Funding for the Goldman Sachs mandate will come from the remaining half of a $161 million Russell 2000 index fund run by BGI; the other half was awarded to active small-cap managers Brandes and Chartwell last month.
The fund also decided to move the $59 million INVESCO managed for the fund in a real estate separate account to a new real estate commingled fund - INVESCO Core Real Estate-U.S. - the manager is starting. Board members decided they could not obtain adequate diversification from a separate account, said Sid McCausland, chief executive officer.
Strategic Investment Solutions was the consultant.