Oakland (Calif.) Police and Fire Retirement System hired BlackRock to manage up to $15 million each in passive international equities and passive long-duration U.S. Treasuries, said Teir Jenkins, investment officer.
The $383 million pension fund issued an RFP in October for at least one manager to run the two strategies. The passive long-duration Treasury portfolio will fall within the pension fund's crisis risk offset asset class.
According to Jan. 29 meeting minutes, BlackRock and Northern Trust Asset Management were the only bidders. Northern Trust was eliminated as a candidate because it already manages a significant amount for the pension fund, minutes showed. Northern Trust managed a $91 million passive domestic large-cap equity portfolio, or 23.8% of the pension fund's total assets, as of June 30.
Also as of June 30, the actual allocations to international equities and crisis risk offset were 11.9% and 8.2%, respectively.
Investment consultant Meketa Investment Group assisted.