San Francisco City and County Employees' Retirement System approved a staff recommendation to put up to $20 million in Ashmore Global Special Situations Fund III, said David Kushner, the system's deputy director for investments. This investment will be included in the system's international equity portfolio as an opportunistic strategy, a category added in August to provide flexibility for investing in strategies that do not fit within existing subasset classes. The Ashmore fund is a hybrid strategy, consisting of public equity, private equity and fixed income.
The system's board also approved a recommendation to invest up to $20 million in Cerberus Institutional Partners Series 4.
Separately, the $14.7 billion system returned 13.46% on its investments for the fiscal year ended June 30, Mr. Kushner said. The system beat its weighted policy index by 2.06 percentage points and also surpassed its 8% assumed actuarial rate.
The biggest gains came from alternative investments, which returned 39.59% for the fiscal year, and international equity, 26.86%. Real estate returned 18.29%; U.S. equity, 8.79%; and fixed income, 2.11%.
The fund's asset allocation as of June 30 was 29.8% fixed income, 29.5% U.S. equity, 21.3% international equity, 9.8% private equity, 9.2% real estate, and the remainder in cash.