San Jose (Calif.) Police & Fire Department Retirement Plan hired Comgest to run about $35 million in emerging markets smidcap equity, pending successful contract negotiations, said Jay Kwon, investment officer.
The decision was made last week by the $3 billion pension fund's investment committee and does not require full retirement board approval.
Also last week, the investment committee of the $2 billion San Jose (Calif.) Federated City Employees Retirement System selected Dimensional Fund Advisors to run about $18 million in emerging markets value equity; that decision will go to the full retirement board for approval in August. The police and fire plan already has $29 million invested in the Dimensional strategy.
Funding for Comgest and Dimensional would come from terminated emerging markets equity manager Vontobel Asset Management. Vontobel, which ran about $63 million for the federated plan and about $77 million for the police and fire plan, was terminated by both pension funds earlier this year because of the departure of Rajiv Jain, co-CEO and chief investment officer.
Mr. Kwon said additional emerging markets equity managers could be hired later this year — all-cap/large-cap and small-cap for the federated plan and all-cap/large-cap for the police and fire plan.
Searches will be handled by the investment staff. RFPs will not be issued. Interested firms can contact the pension funds, Mr. Kwon said.