Investors - OCTOBER 20, 2014

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OCERS launches search for noncore manager

by Reg Clodfelter

The $11.8 billion Orange County (Calif.) Employees Retirement System has launched a search for a noncore real estate manager as the pension system continues to focus on bringing the core/noncore split in its real estate portfolio closer to its target allocations. Currently, core real estate is above its 60 percent target allocation at 67 percent, and noncore real estate is below its 30 percent target at 24 percent (REITs have a 10 percent target allocation and are currently at 9 percent).

“The fund’s strategy shall focus on the acquisition and management of core-plus and value-added real estate assets, which provide an opportunity to increase value through leasing, selective redevelopment, repositioning and other activities,” explains Robert Kinsler, plan spokesperson with OCERS, describing the characteristics OCERS is looking for in a noncore fund.

Kinsler added that the pension fund must be prudently diversified with respect to both asset c

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