SCERS to redeem from two core funds to rebalance real estate portfolio

Sacramento County Employees’ Retirement System (SCERS) is planning to redeem its investment from two core open-ended real estate funds, having become over-allocated to real estate.

Steve Davis, the pension fund’s CIO, said the plan is to redeem about $50m (€43.9m) during the third or fourth quarter of this year to bring its real estate exposure in line with its permissible range of 5% to 9% of total assets.

Real estate currently accounts for 9.5% of the $9.24bn pension fund’s total assets, above its target allocation of 7%.

In a board meeting document, SCERS said it will rebalance the real estate portfolio by redeeming in full from one of the core open-ended funds and partially from another.

It has holdings Jamestown Premiere Property Fund, MetLife Core Property Fund, The Prime Property Fund, Principal US Property Fund, Prologis Targeted Euro Logistics, Prologis Targeted US Logistics and Townsend Real Estate Fund.

The portfolio was valued at $387m at the middle of last year.

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