Santa Barbara County (Calif.) Employees’ Retirement System plans shortlist searches for managers to run a real estate separate account, active large-cap growth equities and intermediate U.S. government fixed income, said Vince Brown, CEO of the $1.7 billion system.
The fully discretionary real estate separate account manager, the system’s first, would handle $53 million and eventually increase the portfolio to the system’s 7% real estate target allocation, he said.
About $145 million would be managed in the large-cap portfolio, while $50 million would be in the bond mandate.
Funding for the large-cap growth manager is from an active all-cap growth portfolio that had been run by First Republic Investment Management, which was terminated in December for performance, according to agenda materials. Bob Thornton, president of First Republic Investment Management, was unavailable for comment.
The bond and real estate mandates are new. Funding for the bond allocation will come from reducing the system’s $504 million core bond portfolio.
Pension Consulting Alliance, the system’s consultant, is assisting in the search.
Separately, the system hired Eagle Asset Management to manage $40 million in active domestic small-cap growth equities.
Eagle replaces OFI Institutional Asset Management, which was terminated after the firm’s small-cap growth team, which was responsible for the association’s portfolio, left to join AlphaOne Capital Partners.
The RFI was issued in the third quarter.