San Diego City Employees' Retirement System hired Investec Asset Management to manage about $110 million in a new local currency emerging markets debt allocation, said Liza Crisafi, chief investment officer for the $6.3 billion pension fund.
The investment represents just over a third of SDCERS 5% emerging markets debt allocation.
Also, the fund hired Neuberger Berman to manage about $65 million in a new emerging markets equity portfolio.
Funding for both hires will come from reducing the pension fund's equity allocation. SDCERS approved a new 1% emerging markets equity allocation at its board meeting in May.
Separately, the pension fund allocated 2% of its opportunity fund allocation to credit opportunities, Ms. Crisafi said.
The allocation can be up to 8% of total fund assets. Hewitt EnnisKnupp, the pension fund's general investment consultant, is leading a shortlist search for a manager. The board is expected to make a selection at its March 13-14 meeting.
In other news, SDCERS officials expect to launch an asset allocation review in May.
