Sacramento County (Calif.) Employees' Retirement System hired Brookfield Asset Management to run $100 million in a customized liquid real return strategy targeting both real estate and real assets, Steve Davis, chief investment officer for the $10.2 billion pension fund, confirmed in an email.
The board for the pension fund also committed $80 million to three alternatives funds.
Funding for the Brookfield mandate will come from redeeming $100 million from State Street Global Advisors' passive real asset proxy, reducing the plan's allocation to SSGA's strategy in half to roughly $100 million from about $200 million.
The board decided in June to convert its 2% commodities allocation to a diversified liquid real return allocation and hire an active manager to complement SSGA's passive mandate, Mr. Davis said.
SCERA also committed $45 million to LMR Fund, a hedge fund managed by LMR Partners; and $30 million to Cortec Group VII, a buyout fund.
The board committed an additional $5 million to New Enterprise Associates 17, a venture capital fund. The system had $20 million in the New Enterprise Associates fund prior to this follow-on commitment.
The SCERA board hired Brookfield and made the commitments at its Wednesday meeting.
AQR Delta Fund II remains on SCERA's watch list for performance reasons. The board placed the diversifying hedge fund managed by AQR Capital Management fund on watch in September.
