Oakland (Calif.) Police and Fire Retirement System named four finalists in its search for an active international core equity manager to run about $34 million, said Teir Jenkins, investment officer.
The $389 million pension fund named Acadian Asset Management, GQG Partners, Strategic Growth Advisors and William Blair & Co. as finalists.
The pension fund issued an RFP in April following a recommendation to move to a core mandate from value and growth tilts. Fisher Investments and Hansberger Global Investors, the current managers, run about $17 million in those styles. Both firms bid for the services.
Presentations will take place at a future board meeting.
Separately, the pension fund terminated NWQ Investment Management from its $9 million active domestic small-cap value equity portfolio due to the departure of Phyllis Thomas, the strategy's co-portfolio manager, from that firm. Assets will be temporarily parked in a Russell 2000 Value exchange-traded fund pending a review of options.
Investment consultant Meketa Investment Group assists with all searches, hires and terminations.
Also, in a performance report in July 31 board meeting materials, the pension fund reported a net return of 5.9% for the fiscal year ended June 30, 40 basis points above its policy benchmark of 5.5%.
For the three and five years ended June 30, the pension fund had annualized net returns of 10.7% and 7.1%, respectively, above their respective benchmarks of 9.5% and 6.8%. Ten-year returns were not available.
The pension fund returned a gross 10.5% in the fiscal year ended June 30, 2018.
For the fiscal year ended June 30, the best-performing asset class was fixed income, which returned a gross 8% (compared to its 8.1% benchmark), followed by domestic equities at 7.1% (below its 9% benchmark), covered calls at 6.9% (3.2%) and international equities at 2.6% (1.8%). Credit and crisis risk offset returns were not available.
As of June 30, the pension fund's actual allocation was 40.9% domestic equities, 25.1% fixed income, 12.2% international equities, 9.7% crisis risk offset, 8.3% covered calls and the remainder in credit.
The target allocation is: 40% domestic equities, 31% fixed income, 12% international equities, 10% crisis risk offset, 5% covered calls and 2% credit.
