San Francisco Employees’ Retirement System (SFERS) plans to deploy approximately $500m (€426m) into its real assets portfolio in the current year, the pension fund disclosed in a board meeting document.
The investment plan for 2025, if fully deployed, is a slight increase from the $395m SFERS invested across six real asset commitments in 2024.
Last year’s real assets investments comprised a 79% allocation to real estate and 21% commitment to infrastructure, with no commitments made to natural resources.
SFERS expects its 2025 real assets investment to focus mainly on real estate and infrastructure, with minimal commitments to natural resources, as the pension fund remains overweight to that asset class.
SFERS, which is currently underweight to real estate, expects to target industrial, residential, special situations and alternatives real estate sectors for investment. For infrastructure, the pension fund expects to focus on the digital and decarbonisation sectors.
The pension fund expects to make most of its commitments through funds and will also explore liquidity solutions by evaluating opportunities in the secondary market.
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