San Joaquin County Employees' Retirement Association, Stockton, Calif., is looking at alternative international enhanced equity approaches, including Research Affiliates' fundamental index approach.
"This is coming out of our frustration with active managers not being able to beat their benchmarks," said Robert Palmer, retirement administrator. Recommendations are expected for the board's Oct. 28 meeting.
Also, the board of the $1.6 billion pension fund today requested information from six managers on an active small-cap to midcap U.S. value equity emerging manager-of-managers program, Mr. Palmer said. The managers, who have until Nov. 4 to respond, are: Attucks Asset Management, FIS Fund Management, Bivium Capital, Legato Capital, Leading Edge and Capital Prospects. The board may allocate all or part of an $80 million active domestic "smidcap" value equity portfolio managed by DePrince, Race & Zollo, which has been underperforming, he said. The board expects to make a decision at its Nov. 18 meeting. Kelly Carbone, partner at DePrince Race, could not be reached for comment by press time.
Separately, the board's real estate committee recommended allocating $30 million to Walton Street Capital Real Estate Fund V and $20 million to Mesa West Real Estate Income Fund as part of the pension fund's efforts to increase real estate to 7% of assets from zero. ORG Real Property is the consultant.