San Diego City Employees Retirement System is planning to increase its infrastructure allocation from 4% to 5% while decreasing real estate from 11% to 10%.
Investment consultant AON said in the pension fund’s board meeting document that the allocation change will improve the balance of its real assets portfolio and provide greater diversification.
As of the end of 2024, San Diego City Employees Retirement’s infrastructure portfolio was valued at $152m (€129.6m), representing 1.3% of its total plan assets.
The pension fund invests in infrastructure on a global basis, using both funds and co-investments to target assets in the US and Europe.
The pension fund targets sectors including utilities, power generation, transportation and public-private partnerships. The infrastructure portfolio seeks a mix of core-plus and value-add transactions that are designed to produce returns ranging from 6% to 8%.
To read the latest IPE Real Assets magazine click here.
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