JULY 12, 2016

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San Diego liquidates separate account

by Reg Clodfelter

The $6.7 billion San Diego City Employees’ Retirement System has decided to liquidate its $358 million separate account with Deutsche Asset Management, confirms Liza Crisafi, chief investment officer with SDCERS.

“This was a risk mitigation measure,” Crisafi said, in an email, pointing out that the separate account alone was worth 55 percent of SDCERS’ real estate portfolio.

In January 2016, the pension fund’s board voted to reduce the size and manager concentration to a target of 35 percent, though the new target would mean that SDCERS would hold only 11 properties in what Crisafi described as a “highly concentrated portfolio.” This change introduced more risk and volatility to the real estate allocation than the retirement system was comfortable with.

“The timing of this action coincides with the recovery in property prices and provides an opportune exit point,” Crisafi added.

The separa

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