Merced County (Calif.) Employees’ Retirement Association will soon begin a search for an infrastructure manager to run about $19 million, said Steven Bland, plan administrator.
It will be the next in a series of searches the $642 million pension fund has been conducting since the adoption of a new asset allocation in December.
The allocation includes a new 3% target to infrastructure. Investment consultant Strategic Investment Solutions is creating a shortlist, but managers can contact the firm if they are interested in being considered, Mr. Bland said.
Meanwhile, the pension fund is currently in the midst of its search for its first bank loan manager following the adoption of a 3% target for that asset class.
At its board meeting Thursday, the pension fund selected Beach Point Capital Management and Guggenheim Investments as finalists for the $19 million allocation. Presentations will take place at the June 26 board meeting.
Also, the pension fund hired Dimensional Fund Advisors to run $15 million in active domestic small-cap equities as a result of the termination of WHV Investment Management, which ran a similar portfolio, for performance.
Marla M. Jennings, director, relationship management, at WHV Investment Management, referred questions to Brian W. Forth, director, relationship management, who did return a phone call seeking comment by press time.
Dimensional had been the other finalist in a shortlist search in the summer of 2013 that resulted in the hiring of PanAgora Asset Management to run a $20 million active domestic small-cap equity portfolio that was intended originally to complement WHV’s portfolio, Mr. Bland said.
Strategic Investment Solutions assisted with all searches and hires.
