Oregon Public Employees Retirement Fund, Salem, will search for a domestic enhanced index equity manager to run about $1.7 billion. The Oregon Investment Council, which oversees the $48 billion pension fund's investments, approved a change in the fund's domestic equity suballocations to 50% active, 25% passive and 25% enhanced index, from 43% active, 43% passive and 14% enhanced, said Ron Schmitz, CIO. The fund hired Goldman Sachs Asset Management last year as its first enhanced-stock index manager.
Based on June 30 data, the fund's enhanced indexing will grow to $4 billion from $2.3 billion, while active management will increase $500 million to $8 billion. The money will come from the fund's U.S. passive allocation, managed by Barclays Global Investors; that allocation will shrink to $4 billion from $6.2 billion. Strategic Investment Solutions is the consultant.
Separately, the fund allocated $250 million to a joint venture with multifamily manager General Investment & Development and committed at least $200 million to Lone Star Fund V, a real estate opportunity fund. The source of funding is not known yet. Pension Consulting Alliance consulted on the real estate commitments.