Orange County Employees Retirement System, Santa Ana, Calif., will issue RFIs for a manager to run $150 million in emerging market equities and a manager to run a $250 million TAA portfolio, both new allocations, said Keith Bozarth, executive director of the $5 billion system. The searches are the result of a recent asset allocation study. Funding will come from decreasing domestic equities to 18% from 33% of assets and domestic fixed income to 19% from 34%, he said. No deadline was established for responses, and selections are expected in early autumn. Callan Associates will assist.
The new asset allocation also includes a four-percentage-point increase in international equities, to 18%; a new 5% emerging markets equities allocation; a new 10% allocation to TIPS; an increase in international fixed income, to 10% from 5%; a one-percentage-point increase in real estate, to 10%; and a new 5% global tactical asset allocation. Alternative investments will remain at 5%.
Separately, the system's board hired Segal Co. as consulting actuary, pending contract negotiations, Mr. Bozarth said. Segal replaces Towers Perrin. The system had launched a search because it had been a number of years since it had done so, he said.
In addition, the board added property site visits to real estate consultant The Townsend Group's duties to add another layer of due diligence, Mr. Bozarth said. The fund has 7.5% of assets already committed to real estate.