Alameda County Employees' Retirement Association, Oakland, Calif., might increase its targets to private equity, alternatives and real estate, and decrease targets to domestic and international equity, recently released investment committee minutes show.
The $6.8 billion pension fund's investment committee, at its Aug. 12 meeting, voted to recommend the board of trustees increase what the pension fund calls its PEARLS (private equity and alternatives return leading strategies) target to 18% from 15% and increase its real estate target to 8% from 6%.
Those increases would be funded by dropping the domestic equity target to 28% from 32% and the international equity target to 26% from 27%.
Targets would remain unchanged for fixed income at 15% and the real-return pool, which is primarily commodities, precious metals and other real assets, at 5%.
As of Dec. 31, the most recent data available, the actual allocation was 36.1% domestic equity, 27.9% international equity, 16.2% fixed income, 8.9% PEARLS, 6.6% real estate, 4.2% real-return pool and 0.1% cash/other.
The board met Aug. 20; whether trustees voted on the recommendation could not be learned by press time.
Investment consultant Strategic Investment Solutions is assisting.
Separately, the investment committee also recommended committing $40 million to Catalyst Fund V, a distressed debt fund managed by Catalyst Capital Group.
Betty Tse, chief investment officer, did not reply to requests for further information by press time; Agnes Macadangdang, administrative specialist in the investments department, referred questions to the investment committee minutes.