San Diego City to sell half of assets in Deutsche AM separate account

San Diego City Employees’ Retirement System plans to sell more than half of the assets held in a separate account managed by Deutsche Asset Management.

The pension fund has been gradually winding down the US property portfolio after making a decision last year to the sell assets and reinvest the proceeds in core open-ended funds.

According to a board meeting document, San Diego City plans to sell six to eight of its 11 remaining assets over the next 12 months, as long as market conditions do not change significantly.

The sales will enable the pension fund to reinvest $150m (€130.1m) in four open-ended core funds.

It plans to invest in RREEF America II for the first time, committing $47m, and will make three follow-on commitments: $45m to the UBS Trumbull Property Fund, $34m to the Morgan Stanley Prime Property Fund, and $34m to PRISA I.

According to the pension fund’s investment consultant Aon Hewitt, UBS Trumbull and PRISA have no entry queues, but it expects delays of between three and nine months, for RREEF America II and Morgan Stanley Prime.

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