Orange County Employees Retirement System, Santa Ana, Calif., on Sept. 27 plans to select an emerging markets equity manager to run $150 million, said Keith Bozarth, CEO. The new manager, to be chosen from three finalists that will be presented to the board, will complement Capital Guardian, which runs $70 million in emerging markets equity for the $5 billion system and is on its watch list. Officials did not want to invest the system's entire 5% emerging markets equity allocation with a single manager.
Separately, OCERS' investment committee will recommend that the board allow PIMCO, which manages $386 million in active core-plus bonds, to increase its non-U.S. investments to 25% from 10%, Mr. Bozarth said. Also, the panel will recommend that Dodge & Cox be allowed to invest up to 20% of its $230 million active domestic large-cap value equity portfolio in U.S.-listed equity securities domiciled outside the United States. Both the PIMCO and Dodge & Cox changes could be presented to the board as early as its Aug. 30 meeting.