Orange County Employees Retirement System (OCERS) is reducing its allocation to real assets as it winds down its timber investments.

The pension fund said in a board meeting report that it would look to lower its real assets target weighting from 22% to 17%.

The reduction is due to its decision to eliminate its exposure to timber and to move its agriculture allocation to zero.

As reported by IPE Real Assets, poor performance has led some investors to move out of timber.

The pension fund’s allocations to real estate, energy and infrastructure will remain the same at 9%, 5% and 3%, respectively.

OCERS said it was working with a timber manager to wind down its two timber investments, which comprise a $92.7m (€82.7m) holding in Valencia Forests and a $15.2m holding in Valencia Tree.

The pension fund has two agriculture investments – $71m in Orange Farms and $60.7m AgriVest Farmland Fund – but did not state whether it would be selling these.

The target allocation to agriculture has been reduced to zero, but it can range up to 5%, implying it is not fully exiting the asset class.

The pension fund originally enlarged its real assets allocation in 2017.