San Bernardino County (Calif.) Employees Retirement Association hired Russell Investments to manage about $180 million in a passive international developed markets mandate, said Don Pierce, investment officer.
The association is now including passive strategies in its $470 million international equity portfolio, Mr. Pierce said.
Under the new structure, 2% to 10% of the international equity portfolio is allocated to volatility strategies, 3% to 10% is targeted for long-only equity strategies and 2% to 6% is allocated for emerging market equity strategies. Sixty percent will be active and 40% of the portfolio passive.
The $4.4 billion association also terminated AIG, which ran $120 million in active international small-cap equity, and Brandes, which ran $60 million in active international smidcap value equity, due to the structural move to passive.
Russell Investments also manages a $110 million currency overlay program for the association.