San Francisco City & County Employees Retirement System increased its emerging markets and international growth equity allocations at the expense of international value equity at its Tuesday board meeting, confirmed David Kushner, deputy director for investments. Staff of the $16.7 billion fund increased emerging markets to 15% of the $4 billion international equity portfolio from 12% and active international growth to 8% from 6%. The active international large-cap value target was decreased to 25% of the portfolio, from 30%. The funds international large-cap value managers are LSV Asset Management, which runs $643 million, and Causeway Capital Management, $505 million.
Staff will also recommend adding two percentage points to the funds passive domestic large-cap value equity allocation, increasing it to 12% of the $5 billion U.S. equity portfolio. It will cut two percentage points from active domestic large-cap value equity, to 8% of the portfolio. The funds active large-cap value manager is Armstrong Shaw Associates, which runs $434 million.
The changes are part of a yearly review of the subasset class structure.
The board also made two private equity commitments: $20 million to Capital International Private Equity Fund V and $15 million to Squadron Capital Asia Pacific Fund.
In addition, it rehired incumbent Institutional Shareholder Services as its proxy voting service provider. An RFP was issued in June, when ISS contract was due to expire.