San Bernardino County Employees' Retirement Association, hired Partners Group Inc. and Standard Life Investments to manage $220 million each in European private equity portfolios, said Don Pierce, investment officer. This is a new mandate for the $3.6 billion fund. Funding will come from public equities.
The board also changed the structure of its 8% allocation to real estate. It increased the allocation to non-core to 35% of real estate assets from 25%, and reduced its core real estate allocation by 10 percentage points to 65% of realty assets, Mr. Pierce said. As part of the change, the board invested $10 million in Fremont Strategic Property Partners II LP and $10 million in Guggenheim Structured Real Estate Inc. The board doubled commitments to Prudential PRISA II and PRISA III, bringing the total to $20 million invested in each fund, Mr. Pierce said. The board also committed an additional $21 million in the RREEF American REIT II Fund; the fund had $20 million invested already. Funding for the additional real estate investments will come from a transitional account managed by RREEF, which had assumed an $83 million portfolio formerly managed by PMRealty.
Separately, the board tentatively scheduled interviews in October for a manager to run $120 million in international growth and in November for a $120 million small-cap growth manager. San Bernardino has not yet launched the searches. New England Pension Consultants is assisting.