San Bernardino (Calif.) County Employees Retirement Association increased its allocation to fixed income and private equity while reducing stocks, said Don Pierce, investment officer for the $6.2 billion association. The board increased domestic fixed income to 16% from 14%, private equity to 12% from 9%, global fixed income to 12% from 7%, and added a new 2% cash allocation. Domestic equity was cut to 20% from 29% and international equity trimmed to 15% from 18%. The board made the changes because the credit crisis will produce some attractive investment opportunities, he said. The board maintained its 8% real estate, 8% real asset and 7% absolute-return allocations.
Moving up the capital structure is a good risk-return tradeoff, Mr. Pierce added.
The association may hire new managers as a result of the allocation change.