Tulare County Employees' Retirement Association, Visalia, Calif., hired Research Affiliates to run $75 million in active international value equities, confirmed David Kehler, retirement administrator of the $1 billion pension plan.
Funding comes from the termination, for performance, of AllianceBernstein, which managed about the same amount in the same approach, Mr. Kehler said.
AllianceBernstein spokesman Jonathan Freedman didn't comment specifically on the termination, but did say in an e-mail: “While the unprecedented market turmoil the past few years has been particularly challenging for value investors, we believe the fund's strategy will prevail in the long run when markets normalize and those who remain steadfast to value investing will be greatly rewarded.”
Investment consultant Wurts & Associates assisted.
The retirement system had a 25.7% allocation to international equity as of March 31.
Separately, the county's $60 million defined contribution plan will issue an RFP for an investment consultant in August, confirmed Rita Woodard, plan administrator and county auditor and treasurer. Incumbent SST Benefits Consulting is invited to rebid. The RFP will be posted on the county's purchasing website.
Also, the DC plan added the TIAA-CREF Social Choice Equity Fund to replace the Neuberger Berman Socially Responsible Investment Fund, which was removed for performance, Ms. Woodard said in a telephone interview.
Neuberger Berman spokesman Alexander Samuelson declined to comment on the termination.