Global Equity Search on At Sonoma County
January 29, 2008
The $2 billion Sonoma County Employees' Retirement Association (SCERA) has approved a search for a global equity manager, said Gary Bei, the California plan's administrator.
Last year, the board increased its non-U.S. equity and global equity allocations (See IMW, 1/21/07). Bei said that funding for the revamped targets would come from the plan's domestic equity allocation.
"The changes recognize the increasing trend toward globalization and expected higher rates of economic growth in non-U.S. and emerging markets," he said. "The increased allocation to global equity is consistent with SCERA strategy to broaden mandates," Bei said. "Global equity managers can pick the best stocks in an industry without regard to their country of origin.
"In addition, U.S. equity managers in the SCERA portfolio are allowed to purchase ADRs up to 25% of the portfolio consistent with this broad mandate and global strategy.This allows the mix of U.S. and non-U.S. equities to drift from a fixed policy allocation when the managers see opportunities on a regional or individual stock basis."
He noted that the board is currently planning to hire a single manager to oversee the approximately $110 million to $120 million mandate.
Ennis, Knupp + Associates is assisting with the search.
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