San Diego City Employees' Retirement System hired Dodge & Cox and, conditionally, Arrowstreet Capital to each manage $145 million in global equity, according to an action summary for the $8.1 billion pension fund.
SDCERS invested the allocation in the Dodge & Cox International Equity Fund and Arrowstreet Global Equity Fund. The pension fund's investment in Arrowstreet's portfolio is subject to staff completing due diligence and an Arrowstreet presentation at the investment committee's Sept. 13 meeting.
Funding comes from the pension fund's $290 million investment in the Dodge & Cox Large-Cap Value Fund, a domestic equity fund. The hires are part of the pension fund's implementation of a plan to reorganize its public equity allocation to 50% U.S. equities and 50% non-U.S. equity, the action summary said.
The pension fund is also transitioning the 8.2% of the pension fund's U.S. equity portfolio managed in the BlackRock Russell 1000 Growth Index Fund to the BlackRock Russell 1000 Index Fund.
SDCERS has a 23.9% allocation to global equities.
Separately, the pension fund committed $20 million to Almanac Realty Securities VIII, a value-added real estate fund managed by Almanac Realty Investors. The debt fund will focus on providing capital to real estate operating companies. This is a new relationship. Aon subsidiary The Townsend Group, SDCERS' real estate consultant, assisted. SDCERS has an 11% long-term target allocation to real estate.