San Bernardino County (Calif.) Employees’ Retirement Association restructured its $900 million fixed-income portfolio, eliminating the core-plus strategy and terminating core-plus managers BlackRock and Bradford & Marzec. Each manages $240 million for the association. The assets will be distributed among managers in the $6.2 billion association’s “alpha pool,” which is a collection of specialized fixed-income strategies.
The association also committed $20 million each to real estate funds Square Mile Partners II LP, LaSalle Asia Opportunity III, AIG Asia Real Estate Partners II and Guggenheim Structured Real Estate III, said Don Pierce, investment officer. It also added $60 million to a cash-plus portfolio with Four Corners’ bank debt portfolio, doubling the account, he said. The commitment was made to add some liquidity to the portfolio, Mr. Pierce said.
Separately, the association earned 19.7% on its investments for the fiscal year ended June 30, said Danielle Jaramillo, communications officer. The fund ranked in the sixth percentile of the Independent Consultants Cooperative Total Fund Universe for the year.
The fiscal year-end asset allocation was 49.9% public equities, 15.8% fixed income, 11.3% real estate, 8.2% private equity, 7.3% cash, 6.3% absolute return and 1.2% timber.
