Orange County Employees Retirement System, Santa Ana, Calif., committed up to $125 million total to two real estate funds, said Girard Miller, chief investment officer of the $11 billion pension fund.
The pension fund committed $75 million to Oaktree Real Estate Debt Fund, managed by Oaktree Capital Management, and $50 million to True North Real Estate Fund II, managed by True North Management Group, with a minimum of $25 million initially and no more than 20% of the fund's total assets.
The investment committee also approved a private equity pacing plan as recommended by the staff and the pension fund's general investment consultant, NEPC. Under the plan, OCERS would commit $120 million this year, $150 million in 2015 and $150 million in 2016.
The investment committee also placed Pacific Investment Management Co.'s Unconstrained Bond Fund on watch because of a changes in key personnel: the departures of Mohamed El-Erian, who was CEO and co-chief investment officer, and Chris Dialynas, a managing director. Mr. Dialynas has been the lead portfolio manager on PIMCO's Unconstrained Bond Fund. He will be taking a sabbatical in the second quarter of this year, according to a memo from Shanta Chary, director of investment operations, to the committee. Currently, PIMCO manages a total of $1.3 billion for OCERS across six investment strategies. PIMCO CIO William Gross has assumed the lead portfolio management responsibilities for the mutual fund. OCERS is invested in the bond fund through a separate account.
The committee is expected to review the status in six months.