The roughly $3.3 billion San Diego City Employees’ Retirement System (SDCERS) will seek out global fixed-income managers to possibly replace London, U.K.- based Rogge Global Partners.
At a September 30 meeting, the investment committee and Callan Associates discussed the underperformance of the firm. According to a memo distributed for the meeting, “Rogge has added little value on an after-fee basis above the Citigroup World Government Bond Index ex-U.S. Unhedged,” since being hired by SDCERS.
Furthermore, returns for the portfolio have “underperformed the index for the past one-, three-, five- and 10-year periods,” the memo said. As a result, investment staff expressed that “other international/global fixed-income managers may compliment SDCERS’ portfolio more favorably” and suggested that an in-house search be initiated. Callan supported the recommendation.
Additional details could not be obtained, however, as Rebecca Wilson did not respond to queries by IMW’s press time. Additionally, John Graham, senior partner and portfolio manager at Rogge could not be reached for comment.
As of June 30, 2009, SDCERS has a target allocation of 4% to international fixed-income. Its other manager in the asset class is PIMCO.