Alameda County Employees’ Retirement Association (ACERA) intends to allocate $125m (€103.4m) to core real estate over the next two years as part of a property portfolio rebalancing plan.
In a meeting document, the pension fund’s real estate consultant Callan said the proposed capital, together with some rebalancing, is intended to help increase the diversification of the overall core portfolio.
The $8.7bn (€7.2bn) pension fund has a number of investments in core open-ended funds including Jamestown Premier Property Fund and UBS Trumbull Property Fund, which underperformed as of the end of September 2020. In comparison, the pension fund’s investment in the Lion Industrial Trust industrial-only property fund performed strongly.
Callan said it also wants ACERA to continue exploring potential investments in non-core funds to diversification.
The real estate consultant is also planning to explore the possibility of increasing ACERA’s 8% real estate allocation to 10% in future. ACERA’s real estate allocation was increased from 6% to 8% in February 2016.
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