Alameda County Employees’ Retirement Association, Oakland, Calif., will search in October for a passive international equity manager to run up to $356 million and active emerging markets equity manager to run up to $178 million, spokesman Michael Fara said in an e-mail.
The $6.6 billion pension fund will issue an RFP as a result of a restructuring of its 27% target to overall international equities, Mr. Fara said. Within the international equity target, the new structure is 20% each, passive international equities, and active large-cap growth, large-cap value, large-cap quantitative equities; and 10% each, active small cap and active emerging markets.
The new structure is the result of a recommendation by investment consultant Verus Advisory to add a passive component to the asset class and “maintaining diversification, given the committee’s sensitivity to investment return and risk,” said a June 8 investment committee meeting summary.
The current international equity portfolio, consisting entirely of active portfolios, is 40% core growth managed by Capital Guardian; 30% core value, Mondrian Investment Partners; 20% core quantitative, AQR Capital Management; and 10% small cap, Franklin Templeton. The latter two managers will not be affected by the structural changes. No managers are scheduled to be terminated, the summTempleton. The latter two managers will not be affected by the structural changes. No managers are scheduled to be terminated, the summary said.
A timeline for completion of the search has yet to be determined.