Sacramento County Employees’ Retirement System (SCERS) is planning to end a $108m (€98.9m) liquid real return mandate with Brookfield Asset Management to help bring its real assets exposure back in line with its target.
SCERS disclosed in a meeting document that it recommends ending the Brookfield mandate which is mainly invested in real estate investment trusts, infrastructure stocks and real assets fixed income.
The assets held by Brookfield in the mandate will be sold and moved into the pension fund’s cash portfolio.
SCERS hired Brookfield for the mandate in 2019. At that time real assets accounted for 5.2% of the pension fund’s asset plan compared with a 7% allocation target for the asset class.
Since then, the real assets portfolio has grown to 8.7% of total plan assets as a result of the pension fund making commitments to the asset class and also due to an outperformance of real assets last year compared with other asset classes during the period.
The pension fund usually uses a transition manager to sell the assets of a terminated manager.
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