San Diego City Increasing Active Non-U.S. Exposure

The San Diego City Employees’ Retirement System approved changes to the Non-U.S. Equity portfolio, according to materials from the March 7th Investment Committee meeting.

In a review with consultant Aon, staff plans to increase exposure to active emerging markets and international small cap. Corresponding with that decision, they will be reducing passive exposure from 60% to 40%.

Additionally, they plan to maintain similar exposure to international mandates by expanding EAFE's (developed only) strategy to include emerging markets.

SDCERS and Aon will work together to identify managers to utilize in both dedicated emerging markets and international small cap.

As of September 30, 2023, the $10.7 billion pension fund allocates approximately 14% to non-U.S. equity with a target of 14.8%.

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