Orange County Employees Retirement System's board voted to restructure the $4.2 billion fund's domestic equities, said Farouki Majeed, CIO.
The Santa Ana, Calif.-based fund's board set new domestic equity target allocations of: S&P 500 index, 34%, up from 29.7%; large-cap growth, 24%, up from 22.5%; large-cap value, 24%, down from 35.2%, midcap, 6%, down from 12.6%; and small-cap, 12%, a new equity asset class for the fund.
Also, high-yield bond exposure will be limited to 20% of domestic bond assets, down from 30%. The target allocation to U.S. bonds will remain 38% of total assets.
The board also placed Schroder Capital on a six-month watch list for the performance of the $246 million EAFE portfolio it manages for the system.
OCERS will initiate a search for a new small-cap growth manager for the $75 million portfolio formerly run by Amerindo, which was terminated in April. Pilgrim Baxter was hired to manage a small-cap value portfolio.