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 summary said.
A timeline for completion of the search has yet to be determined.