OCERS cuts back allocation to private credit

The US pension fund tone down private debt to balance low and high-risk investments in its portfolio.

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Institution: Orange County Employees Retirement System
Headquarters: Santa Ana, United States
AUM: $15.3 billion
Allocation to alternatives: 37.94%

The Orange County Employees Retirement System (OCERS) decided to decrease the allocation to its private credit strategy by two percent to 11 percent.

In addition to the $42 million withdrawal from its credit strategy, the pension system also saw a $7.1 million loss for the asset class in October. Currently, OCERS is allocating 11.29 percent of its portfolio to credit assets.

As illustrated in the charts below, OCERS has allocated 1.71 percent less than its policy allocation, 13 percent, and it plans to further reduce to 11 percent in 2019.

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