Sacramento County Employees’ Retirement System (SCERS) is planning to rebalance its core portfolio by investing in non-US real estate assets and selling some assets.
The pension fund said in a meeting document that it has up to $105m (€92.4m) to invest into non-core real estate this year.
As part of its 2019 investment strategy, the $9.24bn pension reaffirmed its plan to seek exposure to student housing in Europe.
Steve Davis, chief investment officer for the pension fund, said: “This is a strong property type to invest in now due to supply/demand imbalances within the sector.”
SCERS will also be looking at funds that could invest in manufacturing housing, value-add assets in Japan and refrigerated logistics/cold storage.
SCERS said it is planning to reduce its exposure to core assets in 2019 by redeeming around $100m from existing core real estate fund managers.
“We are currently overweight to core assets to so need to lower our exposure to within our target ranges,” said Davis.
As at September 2018, core represented 71% of the pension fund’s real estate portfolio. The long-term goal target is to have a core portfolio of 65% and a non-core portfolio of 35%.
In the current year, SCERS is also planning to make five real assets investments worth around $200m in total.
The pension fund said three of the commitments will be made into infrastructure and it will likely target an invest in Asia, where it currently has little exposure.