San Francisco Employees’ Retirement System (SFERS) is expected to invest around $1bn (€878m) in real assets this year, according to the pension fund’s pacing plan.

TorreyCove Capital Partners, an investment consultant for the $22.2bn pension fund, revealed in a board meeting document that real assets accounted for 14.5% of the pension fund’s assets compared with the 17% long-term allocation target.

Real estate accounted for 69% of the real assets portfolio and natural resources accounted for the remaining 31%. Nearly two-thirds (61%) of the real assets portfolio is located in North America.

Most of the pension fund’s investments have been through funds, although it can purse direct investments and co-investments. According to the board meeting document, the pension fund is more interested in smaller funds.

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