San Diego City Employees to redeem $100 of holdings from MetLife Core Property Fund

The San Diego City Employees’ Retirement System (SDCERS) is planning a redemption from the MetLife Core Property Fund in an effort to reduce the number of core, open-ended commingled funds in the portfolio.

The pension fund would redeem 100 percent of holdings in MetLife Core Property Fund, which represents around $73 million, as of second quarter 2022.

SDCERS said the consolidation will bring the real estate portfolio closer to its 11 percent target allocation, decreasing it from the current 12.1 percent (which is around $100 million above target) to 11.4 percent. It also aligns the core portfolio’s weighting closer to its target of 70 percent and reduces the blended core open-end funds fees by one basis point to 85 basis points.

Iin July 2022, SDCERS approved an objective for fiscal year 2023 to consolidate core ODCE fund holdings from seven funds (excluding UBS) to five or six funds. When combined with the $36 million now in the UBS Trumbull exit queue, p