San Joaquin County Employees' Retirement System, Stockton, Calif., will consider hiring new managers to run opportunistic and value-added real estate portfolios. The board of the $1.7 billion system approved investing up to 40% of the fund's $34 million real estate allocation in value-added, from 20% and expanded the range of opportunistic real estate investments to 0 to 40% of the overall portfolio, from as 0 to 15%, said Robert Palmer, retirement administrator. The board decided there are more opportunities for "better returns" in value-added and opportunistic real estate funds, and there is the "potential" for hiring new managers in these areas, Mr. Palmer said. The system's consultant, ORG Holdings, will screen candidates and make recommendations to board officials in the next 90 days, Mr. Palmer said. Interested managers can contact ORG Holdings.
The board also narrowed the core real estate investment range to 40% to 60%, from 20% to 60%; and reduced the range for public REITs to 15% to 24% from 0 to 25%.
Separately, the board is considering fundamental index investments, Mr. Palmer said. Rob Arnott, chairman and CEO of Research Affiliates, will talk to the board at a special meeting Oct. 4 about the differences between cap-weighted indexes and a fundamental approach.