San Mateo County Employees Retirement Association, Redwood Shores, Calif., is searching for a manager to run $156 million in a domestic fixed-income enhanced indexing strategy, said David Bailey, CEO of the $1.7 billion fund. No RFP will be issued; consultant Strategic Investment Solutions will handle the search and recommend candidates to fund officials. Funding will come from liquidating a $156 million U.S. fixed-income index fund run by Barclays Global Investors, Mr. Bailey said. The board reviewed its fixed-income structure and decided it could gain additional alpha by moving to an enhanced indexing strategy with little or no additional risk, Mr. Bailey said.
Separately, the board voted to lower the fund's assumed earnings rate to 7.75% from 8%, Mr. Bailey said. The assumption will be used in its annual valuation dated June 30, 2005, and that will affect contributions for fiscal years 2006 and 2007.