Sacramento County (Calif.) Employees' Retirement System is conducting a shortlist search for an emerging markets small-cap equity manager to run about $40 million, said Scott Chan, chief investment officer.
It will be the $7.2 billion pension plan's first investment with an emerging markets small-cap manager. Mr. Chan the allocation will further diversify the plan and that emerging markets small cap is viewed as an inefficient area, giving active managers a greater chance to outperform.
Investment consultant Strategic Investment Solutions is conducting the search. Interested managers can contact SIS.
The funding source has not been determined yet.
A hiring decision is expected at the Nov. 6 board meeting.