The $2.2 billion San Diego County Employees' Retirement Association adopted a new real estate investment strategy that eliminates some of the fund's 12 real estate managers, said Paul Boland, administrator.
"We have set out rough guidelines for the kinds of (real estate) investments that we want to be in," said Mr. Boland, who declined to be more specific. The fund has 5% of its assets in real estate, but the percentage won't change, he said. Change will come slowly, because the fund invests through many commingled funds.
Townsend Group is the consultant.
In another development, the county issued pension obligation bonds that eliminated the fund's unfunded liability of about $430 million.
Mr. Boland said the $430 million has been invested in-house in Standard & Poor's 500 Stock Index and Lehman Brothers aggregate bond index funds as well as in derivative instruments representing the indexes.