Oakland (Calif.) Police & Fire Retirement System is searching for core- and core-plus fixed-income managers to run a total of between $25 million and $100 million.
The $470 million pension fund issued an RFP for fixed-income managers following the increase in the pension fund’s target allocation to investment-grade fixed income to 51% from 21% at its Feb. 28 board meeting.
The search was approved at the pension fund’s July 31 meeting, minutes of that meeting showed. That followed approval by the board at its June 26 meeting to structure the fixed-income portfolio to be made up of two core managers and two core-plus managers.
According to minutes of the June 26 meeting, investment consultant Meketa Investment Group recommended including the current managers in the search. Those managers, and their assets managed for the pension fund as of Aug 31, are core manager Ramirez Asset Management ($76 million), core-plus manager Reams Asset Management ($29 million) and core manager Wellington Management ($7 million).
The pension fund has not disclosed whether any managers are being terminated as a result of the larger fixed-income target allocation.
Other target changes approved Feb. 28 were an increase to the target to high yield to 10% from 2% and the reduction in the targets to domestic equities to 25% from 40%, crisis risk offset to 9% from 20%, international equities to 5% from 12% and the elimination of the 5% target to covered calls.
As of Aug. 31, the actual allocation to investment-grade fixed income was 23.8%.
The RFP is available on the DiligenceVault procurement website. Registration is required. Proposals are due by 5 p.m. PDT on Nov. 1. A timeline for selections was not provided.
Meketa Investment Group is assisting with the search.
