San Francisco City & County Employees' Retirement System Chief Investment Officer William Coaker Jr.'s controversial plan to invest 15% of the pension fund's assets in hedge funds is dead.
After the board of the $20 billion pension fund axed Mr. Coaker's idea on Wednesday, a compromise proposal was introduced, allocating 5% of assets to hedge funds.
But the 5%, which appears to have the support of most of the board, is not a done deal. That proposal was tabled for two months to give board members time to study it.
A new vote is now scheduled for the board's regular meeting Feb. 11.
Board members have debated the plan since February, repeatedly delaying a vote.
The new hedge fund proposal is part of a compromise among Victor Makras, board president; Jay Huish, CEO; and Mr. Coaker.
The trio's proposal also calls for first-time allocations of 2% each to infrastructure and natural resources. They also created a special San Francisco Bay Area core real estate allocation of 3%.
They also proposed increasing private equity to 21% from 16%; increasing real assets, which includes real estate, to 17% from 12%; decreasing global equity to 35% from 47%; and decreasing fixed income to 15% from 25%.