San Joaquin County Employees' Retirement Association, Stockton, Calif., hired Bridgewater Associates and Clifton Group to each run about $100 million in risk-parity strategies, confirmed Annette St. Urbain, CEO of the $2 billion system.
The retirement association board decided to award the mandates to both managers after originally allocating 5% of plan assets for the mandate. Ms. St. Urbain said in a telephone interview it has not been determined where the funding will come from for the additional 5%.
An RFP was issued in October.
Separately, the board hired Courtland Partners as its new real estate consultant. Incumbent ORG and Hamilton Lane were the other finalists.
An RFP was issued in September.
The fund's general investment consultant, Strategic Investment Solutions, assisted with both searches.
Also, the board approved terminating Dodge & Cox, which ran a $150 million active large-cap domestic equity portfolio, for performance, Ms. St. Urbain said. Dodge & Cox still runs a core fixed-income strategy that had $246 million as of Dec. 31, 2010. Steve Gorski, Dodge & Cox spokesman, did not return a telephone call for comment by press time.
The $150 million was moved into an existing passive Russell 1000 index fund managed by BlackRock, which now manages all $250 million the pension fund has in domestic large-cap equities. Ms. St. Urbain said the fund could look to add an enhanced or income-focused portfolio in the future.
“We'd rather spend our active risk budget where there is a higher probability of getting a positive return,” Ms. St. Urbain said.