San Bernardino County (Calif.) Employees’ Retirement Association will increase its target allocations to global equities and fixed income at the expense of alternatives as part of an allocation the $5.1 billion system adopted Thursday.
No searches are planned as the result of the changes, said Don Pierce, investment officer.
The global equity will be raised two percentage points to 22%, global bonds will go up one percentage point to 35%, and alternatives will be cut by three percentage points to 41%, Mr. Pierce said. Cash remains at 2%.
Within the global equity portfolio, the association increased domestic and emerging markets equities targets by one percentage point each to 11% and 4% of total assets, respectively. In global bonds, U.S. core bonds are decreasing two percentage points to 6%, while increasing international credit one percentage points to 6% and emerging markets debt two percentage points to 6%, he said.
In the alternatives allocation, real estate’s target is decreasing one percentage point to 9%, absolute return is decreasing three percentage points to 7%, but real assets is increasing one percentage point at 9%. Private equity will stay at 16%.
Separately, the association invested $35 million in Declaration Management & Researchs’s opportunistic fixed-income alternative strategy, a structured credit investment, and $25 million to GoldenTree Asset Management’s Distressed Debt fund.
In other action, Brian Long, an investment officer for the association, was allowed to serve on the advisory board of the Apollo European Principal Finance fund. The board committed $40 million to the fund late last year.