Sacramento County Employees Retirement System (SCERS) is planning to lift its targeted allocation for real estate from 7% to 9% to enable it to target more opportunities.
In a meeting document, the pension fund’s investment consultant Verus recommended the increase and said there are more opportunities available to the pension fund on an annual basis than the current capital available to allocate.
The pension fund’s real estate portfolio has outperformed the NFI-ODCE index by 200 basis point for three years, 240 basis point over five years and 190 basis points since inception.
The new proposed allocation, which requires approval later this year, is expected to be used to target core and non-core funds.
Within its real assets portfolio, SCERS has approved a $25m commitment to the Harrison Street Social Infrastructure Fund, a $1.2bn (€989.4m) fund that will be investing in social infrastructure.
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