Orange County Employees Retirement System (OCERS) intends to invest up to $720m (€622m) next year as it rebalances its real estate and real-return portfolios.
The pension fund, advised by Meketa Investment Group, will look to invest $250m in value-add and opportunistic real estate strategies while reducing its core exposure, according to a board meeting document.
Its real estate portfolio is currently heavily weighted to core investments. Its long-term goal is to have an even balance between core and value-added.
Companies that currently manage OCERS’s core real estate investments AEW, ASB, Morgan Stanley, JP Morgan and Jamestown.
The pension fund is also looking to rebalance its real-return portfolio, which can include infrastructure, agriculture and timberland.
OCERS plans to make $470m of real-return investments in 2018, focusing on infrastructure, while reducing its exposure to timberland.
The pension fund recommends gradually selling down its $125m timberland portfolio, which is managed by Hancock Timber Resource Group and BTG Pactual Timberland.
It might invest in agriculture in the future. Meketa has advised that the asset class has favourable long-term supply-and-demand dynamics.