Seattle City Employees Retirement System may search for an alternatives manager to handle $7 million to $10 million to fill out the fund’s 3% alternatives target allocation. Fund officials also may search for additional brokers for its directed-brokerage program, said Mel Robertson, assistant executive director.
An initial review of the $1.6 billion fund’s alternatives portfolio is being done in-house; if fund officials decide to proceed further, they will seek assistance from performance consultant Wurts & Associates. Currently, 2.5% of the $1.6 billion fund is invested in the asset class, Mr. Robertson said.
Broadcourt, a Merrill Lynch subsidiary, currently handles the commission recapture program, but officials may change the process to give managers a choice of brokers for international and domestic equities and fixed income. Minority firms are encouraged to submit proposals to the system, Mr. Robertson said.
No timetable has been set for when either search would begin, he added.
