Searches and Hires

Phoenix picks LSV for emerging markets equity, commits $50 million to 2 funds

Phoenix City Employees' Retirement System hired LSV Asset Management to run an active emerging markets value equity portfolio, said Greg Fitchet, investment officer.

The $2.5 billion pension fund conducted a shortlist search due to the March 2017 creation of a new 8% target allocation to emerging markets equities. The other finalist was Dimensional Fund Advisors.

The size of the portfolio has yet to be determined. The pension fund has also conducted a shortlist search for active emerging markets growth equity managers and named Driehaus Capital Management and GQG Partners as finalists. The managers will make presentations at the pension fund's Sept. 6 meeting. Also, the pension fund is considering passive emerging markets equity managers.

Once all managers are selected, portfolio sizes within the new allocation will be determined. Funding will come from rebalancing other equity managers; none will be terminated.

General investment consultant Meketa Investment Group is assisting.

Separately, the pension fund committed $25 million each to real estate funds Ascentris Value Add Fund III and Real Estate Capital Asia Partners V, an opportunistic non-core fund managed by SC Capital Partners. The pension fund previously committed $30 million to Real Estate Capital Asia Partners IV in 2014. The Ascentris commitment is a first-time commitment to the manager, Mr. Fitchet said.

Real estate consultant Alignium assisted.