Fresno (Calif.) City Retirement Systems committed $30 million total to two real estate funds, pending legal review, said Robert T. Theller, retirement administrator, in an e-mail.
The joint retirement board for the city's two pension funds committed $15 million each to Oaktree Real Estate Opportunities Fund VII, managed by Oaktree Capital Management, and PCCP Equity VII.
An RFI for value-added/opportunistic real estate managers was issued last year.
Separately, the system will transfer its approximately $95 million investment in Pacific Investment Management's unconstrained bond strategy to two new PIMCO strategies — Corporate Opportunities II, which will invest in middle-market companies globally, focusing on distressed opportunities, and BRAVO III, which will invest in real estate-oriented securities globally, pending legal review. Assets will be split evenly between the new strategies. The “lack of performance of the asset class in general,” combined with economic and return assumptions and an ongoing asset allocation study has resulted in the board's decision to move out of unconstrained bonds altogether, Mr. Theller wrote on the reason for the switch.
The $2.5 billion system has a 15% real estate target and 25% fixed-income target.