Fresno (Calif.) City Retirement Systems is searching for an investment manager to run at least $120 million in a private equity fund of one/separate account.
The search is being conducted to implement the board's new asset allocation, which was adopted in March 2017, which will reduce its exposure to equities while increasing its exposure to alternatives over four years, said Kathleen Riley Brown, assistant retirement administrator, in an email.
Ms. Riley added that there currently is no incumbent manager and that funding will likely come from reducing passive equity.
Managers must be prepared to run a customized fund for the retirement system to be considered. The initial allocation will be spread out over three to four years. The allocation size could be increased depending on the program's success.
The pension fund's target allocation to equities is 48% and private equity, 5%.
NEPC, investment consultant to the $3 billion defined benefit plan, is assisting with the search. The RFP is on NEPC's website. Proposals are due by 4 p.m. EDT on May 4. Ms. Riley said she expects the board to make a decision by July.