San Diego City Employees' Retirement System hired quantitative global equity manager Arrowstreet Capital to manage $145 million investment in its Arrowstreet Global ACWI Fund, said Elizabeth Crisafi, chief investment officer of the $8.4 billion pension fund, in an email.
The investment is the result of a modification to the pension fund's equity portfolio to a globally weighted mandate from a domestic one. Funding came from a Dodge & Cox U.S. large-cap value portfolio.
In August, another $145 million had been transferred from that Dodge & Cox portfolio to a Dodge & Cox global equity mandate. Aon Hewitt Investment Consulting, SDCERS' general investment consultant, assisted.
Separately, SDCERS is targeting $175 million in commitments to private equity and infrastructure each fiscal year 2019 and 2020 and then boosting the annual commitments $200 million from fiscal years 2021 through 2024, according to its latest private equity and infrastructure investment plan. SDCERS' private equity and infrastructure investment plan includes three to seven fund commitments per vintage year as well as five to 15 co-investments.
As of June 30, SDCERS had committed $76 million to private equity funds and $10 million to infrastructure funds. It had $14 million in pending private equity and infrastructure commitments. Some 40% of its private equity and infrastructure commitments in the fiscal year 2018 were in co-investments. SDCERS committed $41 million to six new co-investments and two follow-on co-investments. SDCERS has a 10% target allocation to private equity and infrastructure.
SDCERS also plans to commit $100 million to real estate, composed of $60 million to core and $40 million to non-core in fiscal year 2019.