Home ListingJuly 16, 2015

San Diego County Terminates OCIO Salient

The $10.6 billion public pension fund and Salient Partners will end their relationship as of August 15.<br />

Reported by Featured Author

The San Diego County Employees Retirement Association (SDCERA) announced it would terminate its contract with outsourced-CIO (OCIO) Salient Partners effective August 15.

The board’s decision brings to an end SDCERA’s six-year discretionary relationship with the Houston, Texas-based firm.

“Since Steve Sexauer’s arrival as our CIO, Salient has worked in close collaboration with us to ensure the transition to an in-house program is successful.” —SDCERASkip Murphy, board chair for the $10.6 billion public pension fund, said the termination indicates a “philosophical shift to return to an in-house investment management program.”

Last November, SDCERA’s board initially voted to transition the portfolio from Salient. The fund also hired Steve Sexauer, former CIO of Allianz’s US multi-asset team, as its internal CIO in May.

“Since Steve Sexauer’s arrival as our CIO, Salient has worked in close collaboration with us to ensure the transition to an in-house program is successful,” Murphy continued. “We are confident that cooperation will continue until the transition is completed.”

Sexauer likewise commended Salient and its CIO Lee Partridge’s efforts in creating a smooth transition and said their work has been “careful, thorough, and professional.”

Salient said in a statement that it was pleased with the value it has helped create for San Diego County’s plan members and retirees.

“Salient came aboard during a period of considerable market turbulence and, during our tenure, the fund’s assets grew by $4.5 billion,” Partridge said. “We’re optimistic about the system’s continued health under Mr. Sexauer’s leadership.”