Seattle City Employees’ Retirement System issued an RFP for an investment consultant, confirmed Ken Nakatsu, interim executive director.
The contract of Pension Consulting Alliance expired June 30 but was extended for one year. Mr. Nakatsu said the $2 billion pension plan has not issued a consultant RFP since PCA was hired in 2007.
Also at Thursday’s meeting, board members approved a new asset allocation. Real return increased to 9% from 4%, and real estate and private equity each increased one percentage point to 13% and 7%, respectively. International equity decreased to 26% from 27% and fixed income remained at 20%.
Domestic equity remained at 25%, of which 10 percentage points is low-volatility strategies. A previous 6% allocation to covered calls is now included within the new low-vol allocation. The remaining 15 percentage points of the domestic equity portfolio is in traditional U.S. equity. Mr. Nakatsu said the board wanted to broaden the covered call allocation to include other low-volatility strategies. He added that an RFP could be issued for a real return manager in the future, but the focus now is on the consultant RFP.
The consultant RFP is available on the SCERS website. Proposals are due at 5 p.m. PST Jan. 10. A hiring decision, pending board approval, is expected Feb. 27.