San Diego City Employees' Retirement System hired Allianz Global Investors, Lynx Asset Management and Systematica Investments to manage the system's new managed futures allocation.
The board took the action May 10, according to a recently released summary from that meeting. The $8 billion pension fund added a new 4% allocation to managed futures as part of its 8% opportunity fund allocation in March. Systematica will manage $130 million, while Allianz Global Investors and Lynx Asset Management will run $100 million each.
The new allocation was created to provide attractive risk-return characteristics, returns uncorrelated to traditional asset classes and downside protection in periods of market stress. Investment consultant Aon Hewitt Investment Consulting assisted.
Separately, SDCERS committed $20 million to Senior Housing Partnership Fund VI, a non-core real estate fund managed by PGIM Real Estate. As of Sept. 30, the actual allocation to real estate was 8.6%.
Real estate consultant Townsend Group assisted.
Elizabeth Crisafi, chief investment officer, could not be immediately reached to provide further information.
