Kern County Employees' Retirement Association, Bakersfield, Calif., hired Harvest Fund Advisors and Pacific Investment Management Co. to run $35 million each in midstream energy portfolios.
The $4.4 billion pension fund's board approved the hirings at its Aug. 12 meeting, said Daryn Miller, chief investment officer.
KCERA issued an RFP in April after the board created a new 5% target to midstream energy. The hirings will give the new asset class an actual allocation of about 1.6%.
The new target was funded with a reduction in core fixed income to 14% from 19%. No managers were terminated as a result of the reduction, Mr. Miller said at the time.
Separately, the board also approved a commitment of $30 million to Covenant Apartment Fund X, a value-added real estate fund managed by Covenant Capital Group.
As of June 30, the actual allocation to private real estate was 1.2%; the target is 5%.