The San Francisco City & County Employees' Retirement System will terminate W.R. Huff Asset Management, which ran an $88 million high-yield corporate bond portfolio, based on a recommendation from general consultant Angeles Investment Advisors, said David Kushner, deputy director for investments at the $14.9 billion system. The decision was due to organizational changes at W.R. Huff, according to a memo from Angeles Investment Advisors. Assets will be reallocated among existing fixed-income managers, Mr. Kushner said; he declined to provide specifics.
The system's board approved a recommendation to increase the annual commitment pace for alternative investments to $400 million in 2007, with a range of $350 million to $450 million, according to a memo from Portfolio Advisors, the system's alternatives consultant. The 2006 commitment pace is $375 million. The increase will raise the system's alternatives allocation to its 12% target from 10.2%, the memo said. Individual commitments will range between $20 million and $40 million.
Separately, the board approved a $75 million real estate co-investment with Capmark. It also added $25 million the fund's investment in a multifamily property co-investment program with Capmark.