Orange County Employees Retirement System, Santa Ana, Calif., made several changes in its asset allocation, as the result of a recent study, said Keith Bozarth, executive director of the $5 billion system. The fund decreased domestic equities to 18% from 33% of assets; decreased domestic fixed income to 19%, from 34%; increased international equities to 18%, from 14%; increased international fixed income to 10%, from 5%; increased real estate to 10%, from 9%; left alternative investments at 5%; and added a 5% allocation to emerging markets equities, 10% to TIPS and 5% to global tactical asset allocation.
Fund officials will soon look for a manager to run $150 million in emerging market equities and a manager to run a $250 million TAA portfolio; they expect to make selections in early autumn. Callan Associates will assist.
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% committed in real estate now.
