People - JULY 8, 2014

SFERS continues search for real assets consultant

by Reg Clodfelter

The San Francisco City and County Employees’ Retirement System is currently searching for a real assets adviser for its newly formed real assets portfolio, and tomorrow the board will be recommended three candidates for interviews: Cambridge Associates, Real Assets Portfolio Management and The Townsend Group.

The new portfolio will include SFERS’ $1.7 billion real estate portfolio but may also invest in other inflation-sensitive assets. Though the retirement system will have a clearer picture of its investment strategy for the portfolio once a consultant has been selected, board documents list oil and gas, renewable energy, metals, timber, infrastructure and inflation-linked bonds as potential asset classes to pursue.

The new consultant, which SFERS is expected to select on Aug. 13, will receive a three-year contract, with the retirement system retaining the option for two one-year contract extensions after the initial three-year period has expired.

A target allocation has yet to be determined for the portfolio, but the $19.2 billion retirement system had a target allocation of 12 percent to its real estate portfolio with an acceptable range of 9 percent to 15 percent. The portfolio’s current allocation is approximately 9.3 percent.


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