Orange County Employees Retirement System

The Orange County Employees Retirement System (OCERS) is a defined benefit pension system providing retirement benefits to employees of Orange County and participating agencies in California. Operating under the County Employees Retirement Law of 1937, OCERS manages approximately $23 billion in total assets, making it one of the larger county-level pension systems in the state.

Investment Strategy

OCERS employs a diversified, multi-asset investment strategy designed to meet its actuarial return target while managing portfolio risk. The asset allocation includes public equity, fixed income, real estate, private equity, infrastructure, and other alternative investments. The Board of Retirement sets the investment policy and strategic allocation targets, informed by periodic asset-liability studies and input from external investment consultants.

Public equity holdings span domestic and international markets with allocations to both active and passive strategies. Fixed income provides portfolio stability through government bonds, investment-grade credit, and other income-generating instruments. OCERS has built a substantial alternatives program that includes private equity, real estate, and real assets, reflecting the fund’s long time horizon and capacity to accept illiquidity.

The system’s investment philosophy centers on disciplined adherence to strategic targets, diversification across asset classes and managers, and cost-effective implementation.

Private Markets Approach

OCERS maintains an active private markets program encompassing private equity, real estate, and infrastructure. The private equity allocation includes buyout, growth equity, venture capital, and co-investment opportunities, with diversification across vintage years, fund sizes, and geographies. OCERS has developed relationships with established general partners and selectively evaluates emerging managers.

Real estate investments include core, value-add, and opportunistic strategies through commingled funds and separate accounts. Infrastructure investments provide stable cash flows and inflation linkage, complementing the broader alternatives portfolio.

OCERS manages a structured commitment pacing plan for private capital to maintain target exposures. Fund managers seeking allocations should expect rigorous due diligence that evaluates investment strategy, performance attribution, organizational depth, operational capabilities, and fee terms. The investment staff and consultants conduct detailed analysis, with the Board of Retirement approving all significant new commitments.