Sonoma County Employees' Retirement Association, Santa Rosa, Calif., increased the target allocations to farmland and infrastructure to 8% each.
The $3.1 billion pension fund's investment committee voted on May 27 to increase the targets to farmland and infrastructure from 5% each, said Steven Marsh, senior investment officer.
Farmland and infrastructure fall within the pension fund's real assets portfolio. The target to real estate remains unchanged at 10%.
Funding comes from the reduction of the target to total fixed income to 15% from 19% and total equities to 59% from 61%. Specific sources have yet to be determined, Mr. Marsh said.
He also noted that the pension fund's investment committee will vote on a potential infrastructure commitment at its July 29 meeting, and a shortlist search for farmland is still pending.
Separately, the pension fund terminated Hexavest from its $219 million active global equity portfolio, Mr. Marsh said. The termination was due to organizational changes, and the pension fund has yet to determine specifically how to reallocate those assets.
Investment consultant Aon Investments USA assists with shortlist searches, hires and terminations.