Thursday, February 26, 2015
Monthly Investment Portfolio Report update
$200 million of the existing OCERS Core Plus allocation will go to Dodge and Cox's Core Fixed Income Strategy, which will leave $100 million with PIMCO in their Total Return Strategy as the retained manager.
Board approval of Dodge and Cox is provisional, subject to satisfactory contract negotiations, legal due diligence, etc.
PIMCO will continue to manage on OCERS' behalf the Unconstrained Bond Fund, All Asset All Authority, Distressed Senior Credit Opportunities Fund, Global Credit Opportunity Fund, Total Return and Commodities Fund, totaling approximately $950 million across all strategies. Other than the Total Return Strategy, other PIMCO mandates at OCERS are unchanged.
OCERS Chief Investment Officer Girard Miller said of the Committee actions taken on February 25, 2015: "The OCERS Investment Committee's decision to split its Core Plus mandate reflected a desire to increase our fixed-income manager diversification, and include a third manager in our stable of active fixed income managers. We are very pleased to add Dodge and Cox to enhance our select team of complementary managers, and were impressed with their consistency of positive returns over market cycles as a result of their impressive corporate bond and credit research capabilities. The decision to retain PIMCO for $100 million in their Core Plus bond strategy, along with our ongoing investment in their Unconstrained Bond strategy, reflects our continuing respect for the PIMCO team, their long history of strong performance for us at OCERS, and the firm's substantial research and strategic resources."
The next regular Board of Retirement meeting will be held at 9 a.m. on Monday, March 16, 2015; the next Investment Committee meeting will be held at 9 a.m. on Wednesday, March 25, 2015. Both meetings will be held in the Board Room at OCERS, 2223 E. Wellington Avenue, Suite 100, Santa Ana, CA.