Two San Jose, Calif., pension funds are searching for a general investment consultant.
The $3.6 billion San Jose Police & Fire Department Retirement Plan and $2.1 billion San Jose Federated City Employees Retirement System issued an RFP for a firm to provide general investment consulting services because the contract of current consultant Meketa Investment Group expires in February, said Ron Kumar, investment operations supervisor, in an email. The firm is invited to rebid, he said.
The police and fire department retirement plan's target allocation is 36% public equities; 22% private markets; 17% short-term investment-grade fixed income; 5% each absolute return, core real estate and immunized cash flows; 3% each sovereign bonds ex-U.S. and emerging markets debt; and 2% each commodities and Treasury inflation-protected securities.
As of Sept. 30, the actual allocation was 36.4% public equities, 22% private markets, 14.1% short-term investment-grade fixed income, 6.7% absolute return, 4.9% immunized cash flows, 4.1% core real estate, 3.2% emerging markets debt, 3% sovereign bonds ex-U.S., 2% each commodities and TIPS; 1.1% cash and overlay, and 0.5% high-yield debt.
The federated city employees retirement system's target allocation is 30% public equities, 25% private markets, 20% short-term investment-grade fixed income, 7% absolute return, 5% each core real estate and immunized cash flows, 3% each commodities and emerging markets debt, and 2% TIPS.
As of Sept. 30, the actual allocation was 30.4% public equities, 24.8% private markets, 18.9% short-term investment-grade fixed income, 7.4% absolute return, 5% immunized cash flows, 4.2% core real estate, 3.3% emerging markets debt, 2.9% commodities, 2.1% TIPS, and 1% cash and overlay.
The RFP is available on the city of San Jose's procurement website. Registration is required. Proposals are due at 4:30 p.m. PST on Feb. 21. A timeline for a decision was not provided.