Seattle City Employees’ Retirement System is searching for at least one infrastructure manager, said Jason Malinowski, chief investment officer, in an e-mail.
The $2.4 billion pension fund plans to commit between $50 million and $70 million to one or more open-end funds. The search is the result of a new 3% target to infrastructure and would be the pension fund’s first such commitments. No managers will be terminated, Mr. Malinowski said.
Investment consultant NEPC is assisting.
The new target is the result of an asset allocation study approved by the pension fund’s board of administration at its April 9 meeting.
The RFP is available on NEPC’s website. Proposals are due at 4 p.m. EDT on June 5. The pension fund plans to make a decision by the end of October.
The new target allocation is 48% public equities, 18% broad fixed income, 12% real estate, 9% private equity, 5% each credit fixed income and diversifying strategies, and 3% infrastructure.
The previous targets were 27% international equity, 25% domestic equity, 20% domestic fixed income, 12% real estate, 6% each covered calls and private equity, and 4% real return.
As of Dec. 31, the pension fund’s actual allocation was 32.9% domestic equity, 25.3% international equity, 21.4% domestic fixed income, 10.6% real estate, 5.2% absolute return, 2.5% cash, 1.7% private equity and the rest in overlay.