Orange County Employees Retirement System, Santa Ana, Calif. increased its absolute-return allocation to 7% from 5%, which will result in a search, said Keith Bozarth, CEO of the $7.3 billion fund. Funding will come from reducing the fund’s international bond exposure by two percentage points to 8%. Further details have not been determined, Mr. Bozarth said.
Separately, the board decided to search for the system’s first cash overlay manager.
Also, the board delayed a decision on whether to reduce the fund’s TIPS allocation by two percentage points and allocate 2% of assets to commodities. A decision might be made at the April 16 meeting. The change is part of a 5% allocation to real return strategies that was approved last year.
The board also voted to keep Capital Guardian on watch for performance of a $600 million active international equity portfolio and Peregrine Capital on watch for performance of a $130 million active domestic large-cap growth portfolio.
Capital Guardian’s policy is to never discuss clients or their decisions, said Chuck Freadhoff, spokesman. Robert B. Mersky, president and portfolio manager at Peregrine Capital, could not be reached by press time for comment.
