Seattle City Employees' Retirement System hired Arrowstreet Capital to run an $80 million active global equity portfolio.
The $3.5 billion pension fund's board approved the hiring at its Dec. 8 meeting, said Jason Malinowski, chief investment officer, in an email.
The pension fund conducted a shortlist search following the board's Aug. 11 termination of Pacific Investment Management Co. from a similar portfolio.
The manager had run its PIMCO RAE Fundamental Global strategy for the pension fund since 2015. Mr. Malinowski said in an August email the pension fund decided to restructure its public equity allocation to "avoid persistent factor tilts." That change means the PIMCO portfolio is no longer an optimal fit since it is a "deep value strategy," he said.
Since the termination, assets have been temporarily parked in the pension fund's overlay account managed by Russell Investments.
As of Sept. 30, the pension fund's actual allocation to public equities was 43.6%; the target is 48%.
Investment consultant NEPC assisted.
