Philadelphia Municipal Employees Retirement System's board approved a...

Philadelphia Municipal Employees Retirement System’s board approved a $20 million commitment to OCM Opportunistic Fund III, a distressed debt fund, said Marc Bonavitacola, chief investment officer for the $4.7 billion fund. The fund also made changes in the mandates of many of its international managers, shifting four of them to EAFE plus emerging markets mandates from pure active EAFE or emerging markets mandates. The fund’s new benchmark is the EAFE index plus 200 basis points, he said. The four managers can opportunistically invest up to 20% of their assets in emerging markets, he said. The fund retains its 20% target allocation to international equities in developed markets and 2% allocation to emerging markets. Montgomery Asset Management now runs a $70 million EAFE plus portfolio, previously it was a pure emerging markets manager. Putnam Investments, with $110 million; Glenmede Trust, with $111 million; and Delaware International, with $205 million, will become EAFE plus managers. Previously, each was an active EAFE manager.