East Bay Municipal Utility District Employees' Retirement System, Oakland, Calif., is searching for up to two high-yield managers to run a total of about $95 million and and up to two bank loan managers to run a total of about $65 million.
The $2.5 billion pension fund issued two requests for proposals that have been posted on the website of investment consultant Meketa Investment Group, which is assisting with both searches.
The searches are being conducted as a result of changes to the pension fund’s asset allocation approved at its board’s May 23 meeting, minutes of that meeting showed.
The changes included increases to the targets to high-yield bonds to 7.5% from 2.5% and bank loans to 5% from 2.5%. The board also approved the addition of a new target of 5% to private debt, an increase in the domestic equities target to 35% from 25%, and the elimination of the 20% covered calls target and 2.5% real estate investment trusts target.
Targets that remained unchanged were 25% international equities, 20% investment-grade bonds and 2.5% core private real estate.
As of June 30, the actual allocation was 28.3% domestic equities, 24.3% international equities, 21.8% fixed income, 20.6% covered calls, 4.7% real estate and the rest in cash.
The high-yield RFP and bank loan RFP are each available from Meketa on the DiligenceVault procurement website. Registration is required. All proposals are due by 5 p.m. PST on Dec. 9. Timelines for selections were not provided.
