Orange County Employees Retirement System, Santa Ana, Calif., committed a total of $300 million to alternatives funds, spokesman Robert Kinsler said in an e-mail.
The $11.8 billion pension fund committed $100 million to Kayne Private Energy Income Fund, managed by Kayne Anderson Capital Advisors. The commitment is subject to final due diligence and successful contract negotiations, Mr. Kinsler wrote. OCERS previously invested $70 million in August 2012 in Kayne Anderson Energy Fund VI.
Separately, OCERS committed a total of $150 million from its 2015 pacing plan to three private equity managers: $75 million to Pantheon Ventures, $50 million to Abbott Capital Management and $25 million to Adams Street Partners. OCERS has invested with all three managers in the past.
OCERS also pre-committed $25 million a year for 2017 and 2018 to Pantheon Ventures for a bundled private equity fund of funds that would make pro-cyclical investments in recessionary and/or contracting capital markets. OCERS initially committed $100 million to Pantheon Ventures in May following a collaborative RFP process with other California public pension plans.
The strategy includes an aggregate pricing structure designed to offer lower fees for smaller to medium-sized pension funds. The pension fund's general investment consultant, NEPC, assisted.
Separately, the OCERS investment committee on Nov. 19 authorized Girard Miller, OCERS' chief investment officer, to hire one of three firms to implement a euro currency hedging strategy for no more than three years and for a notional exposure of no more than 50% of OCERS' risk adviser's estimated effective euro currency exposure in the international equity portfolio or $500 million, whichever is less. The three managers are Parametric Clifton, BlackRock and Russell Investments.
The strategy is subject to semiannual reviews by the OCERS investment committee or manager monitoring subcommittee.
In other news, OCERS returned 4.95% for the year ended Oct. 31. The pension fund's annualized return for the three years ended Oct. 31 was 8.89%; and the 10-year return was 7.18%.
Mr. Kinsler could not be reached seeking more information by deadline.