City of Fresno updates real estate pacing plan

Investment consultant NEPC proposes committing $55m to value-add real estate in 2024 to keep in line with City of Fresno's policy targets.

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Institution: City of Fresno Retirement Systems
Headquarters: Fresno, US
AUM: $3.8 billion
Allocation to real estate: 5.1%

NEPC, City of Fresno Retirement Systems’ investment consultant, has recommended that the LP update its real estate pacing plan.

Namely, NEPC proposes committing $55 million to value-add real estate in 2024 to keep in line with City of Fresno’s policy targets. The consultant also suggests lowering core real estate from 9 percent to 6 percent of the total plan, and increasing non-core real estate from 6 percent to 9 percent of the total plan to improve expected returns.

Lastly, NEPC is also prioritizing increasing the real estate program’s geographic diversification with a long-term goal of approximately 60 percent North America, 25 percent Europe and 15 percent Asia to improve expected returns.

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