A motion to bump up the infrastructure allocation for the $11.8 billion San Diego City Employees’ Retirement System (SDCERS) has passed unanimously.
According to a board document from July, an additional 1 percent of the total fund will be allocated to infrastructure, while the target allocation to real estate will reduce by 1 percent. This leaves the overall allocation to real assets — under which both asset classes fall — unchanged at 15 percent.
Infrastructure now has a 4 percent target, changing to 5 percent, and real estate has an 11 percent target, reducing to 10 percent.
SDCERS said its general investment consultant, Aon, and staff recommended the asset allocation change to slightly enhance the risk/reward profile of the total fund.
“The reduction in real estate in favor of infrastructure is a change within the existing 15 percent allocation
