Orange County Employees Retirement System, Santa Ana, Calif., on Feb. 20 is expected to decide whether to search for at least one global real estate securities manager, said Keith Bozarth, CEO of the $7 billion system. The search is the result of a new suballocation to real estate securities, with a range of 0-15% of its $525 million real estate portfolio and a target of 10%. Further details were not immediately available.
The board also is expected to decide whether to allocate 2% of total assets to timber and search for at least one manager, Mr. Bozarth said. The system has invested in timber since 1992 and has $35 million with Hancock Timber, but has not made new commitments since 2002 because the fund was focusing on timber as part of its private equity investments. Funding would come from reducing the system's TIPS portfolio; PIMCO runs about $560 million in TIPS and Barclays Global Investors manages $140 million.
The board is also considering adding an infrastructure allocation. No timetable for a decision has been set for the new allocation.