The $16 billion Orange County (Calif.) Employees Retirement System (OCERS) has plans to consider one to two noncore real estate commitments in the next fiscal year.
OCERS will focus on industrial and apartment noncore specialties in 2019–2020 and work to increase exposure to the West Coast as attractive investment opportunities arise.
Last year, the system committed $150 million to two new core funds: one niche sector specialist fund investing in medical office, senior housing, student housing and self-storage, and one pure-play industrial fund. Capital will be drawn for the core investments in the third quarter of 2019.
OCERS will continue to aim for a target portfolio mix of 60 percent core and 40 percent noncore, maintaining a core overweight in order to protect the portfolio from a potential market correction.
The system has a $1.35 billion allocation to real estate, or 8.3 percent, with a target of $1.47 billion, or 9 percent.
