Orange County Employees Retirement System, Santa Ana, Calif., is winding down its remaining positions with five managers, said Girard Miller, chief investment officer for the $12.6 billion pension fund, in an e-mail.
The pension fund is redeeming two managed commodities portfolios with Schroders, which had a $40 million portfolio, and PIMCO, which had a $28 million portfolio; two global bond portfolios with GAM and Mondrian Investment Partners; and a $206 million Mercator Asset Management international equity portfolio as part of a manager consolidation strategy. The money will be reallocated to the remaining three international equity managers — BlackRock, Capital Group and AQR Capital Management. After the reallocation, BlackRock will have $475 million and Capital Group and AQR will run $238 million each, Mr. Miller wrote.
OCERS officials are “depleting-to-zero through redemptions” the managed commodities accounts from Schroders and Pacific Investment Management Co.
The pension fund has less than $100 million in the GAM portfolio and $15 million with Mondrian in an international small-cap allocation, Robert Kinsler, OCERS spokesman, wrote in an e-mail.
As part of its consolidation strategy, OCERS officials also plan to systematically and incrementally reduce its $115 million investment in a PIMCO diversified credit portfolio for possible new diversified credit investments as opportunities arise.