Updated with correction
Orange County Employees Retirement System, Santa Ana, Calif., increased its real return allocation to 7% from 4%, and reduced non-U.S. fixed income to 5% from 8%, said CIO Shanta Chary.
The board of the $6.7 billion system is expected to select ranges and rebalancing options at its next board meeting on Aug. 24, Ms. Chary said.
Mondrian Investment Partners is the system's sole non-U.S. fixed-income manager, managing a $580 million portfolio.
The board will retain its current 6% TIPS suballocation but has yet to decide which subasset classes to add or increase within its real return asset class. It has not yet been determined if there will be any searches as a result of the change.
The moves follow an asset allocation study by investment consultant Callan.
Separately, the total fund returned 5.05% for the five months through May 31 and a compound annualized 4.71% for the five years ended May 31.