The $5 billion Orange County (Calif.) Employees Retirement System added emerging markets equities, TIPS and global TAA to its asset mix, said Keith Bozarth, executive director. Domestic stocks and bonds were slashed to fund the new asset classes.
Treasury inflation protected securities will account for 10% of the asset mix; emerging markets equities and global tactical asset allocation, 5% each. Domestic stocks were cut to 18% of assets from 33%; domestic fixed income, to 19% from 34%.
At the same time, the fund increased its international equity allocation to 18% of assets from 14%, doubled its international fixed-income allocation to 10% and increased real estate one point to 10%. Alternatives were left unchanged, at 5%.