Fresno County (Calif.) Employees' Retirement Association allocated an additional $22 million to Eaton Vance Institutional Senior Loan Fund, confirmed Doug Kidd, investment officer for the $5.8 billion pension fund.
The pension fund already had $170 million in the fund. Funding for the increased allocation will come from redeeming its position within the Eaton Vance Institutional Senior Loan Plus Fund.
The senior loan plus fund was originally intended to be a "higher octane addition to the main bank loan fund," Mr. Kidd said in an email. "In times of severe credit stress, it was anticipated that some or all of the main bank loan fund would be moved into the plus fund, using leverage to augment returns."
Since that level of distress hasn't happened, the board reallocated the funds.
The board also placed on watch an emerging markets equities strategy managed by Mondrian Investment Partners to evaluate whether it's remaining consistent with its advertised investment process. Mondrian manages $181 million in the strategy on behalf of FCERA.
Verus Advisory, the pension fund's investment consultant, recommended the action with Mondrian. There is no timeline for the evaluation.
The board took the actions at its meeting Wednesday.