Orange County Employees Retirement System (OCERS) is planning to invest up to $225m (€184.3m) in real estate in the fiscal 2022 year beginning in July.

According to the $19.5bn pension fund’s meeting document, all of the proposed capital will be invested in non-core funds.

A part of the investment plan during the period could including topping up commitments to existing managers in the pension fund’s portfolio.

OCERS also plans to further explore niche investment opportunities that are expected to generate “outsized risk-adjusted returns” or provide a level of diversification to the portfolio.

The pension fund, which seeks to lower its core real estate exposure – to 7% from 9% – is still in the redemption queues of several of its core open-ended funds.

The pension fund’s real estate consultant, The Townsend Group, said in the meeting document that OCERS will continue to evaluate current core open-ended positions and consider further rebalancing to focus on boosting returns and deliver appropriate core portfolio objectives.

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