International / Global / Emerging Markets
Pension fund staff will conduct further review the universe of active emerging markets ex-China funds as part of an expected search request later this year after the board agreed to divest its current passive allocation to the asset class from the country.
The retirement system will conduct searches for international small-cap equity, high-yield fixed-income and bank loan managers.
The searches are required to comply with state procurement requirements.
The firm has launched the strategy to carve out China from their emerging markets allocation and gain more exposure to smaller emerging market economies underrepresented in the main index.
The retirement system hired three global equity managers to replace its dedicated international and emerging markets equity allocations in the first quarter.
The search will not include the plan’s two incumbent firms.
The plan terminated an international equity manager that saw a personnel departure last year.
The plan’s sole emerging markets equity manager was first hired in 2018.
The plan expected to begin the search to comply with state regulatory requirements.
The searches stem from a new asset allocation and international equity structure review approved in February.