San Joaquin County Employees Retirement Association (CERA) has set a $200m (€182.2m) real estate pacing amount for this year, according to a board meeting document.
The pension fund’s consultant Meketa Investment Group disclosed in the document that $75m of this amount will be allocated to core open-ended funds.
San Joaquin CERA has no plan to invest additional capital in this area for the next four years.
The core open-ended fund sector has experienced a surge in redemption requests from limited partners in the US.
According to Mekata, the NFI-ODCE Index had approximately 19.3% of its net asset value in the redemption queue during the first quarter of this year.
This is significantly higher than the 9.2% peak observed during the height of the COVID-19 pandemic in the fourth quarter of 2020. It also surpasses the 15% peak reached during the great financial crisis, when redemption requests exceeded new contributions for two consecutive years.
San Joaquin CERA plans to allocate $125m to non-core real estate investments this year. All of this capital is expected to be invested in funds.
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