SDCERS outlines 2021 real estate investment plan

The pension is targeting up to three investments $20m-$30m investments in the asset class.

Institution: San Diego City Employees’ Retirement System
Headquarters: San Diego, United States
AUM: $8.3 billion
Allocation to Alternatives: 27.9%

San Diego City Employees’ Retirement System plans to invest $60 million next year in real estate funds that deploy non-core strategies, according to its FY 2021 Annual Investment Plan.

Other highlights from SDCERS’ annual investment plan include:

  • The system plans to make two to three commitments between $20 million and $30 million to real estate-focused funds in 2021.
  • SDCERS will invest with blind-pool opportunistic funds that perform well when the market is volatile or stressed, resulting in better vintages for the funds.
  • The pension plans to make further commitments to industrial specialist funds if the sector continues to perform well.
  • SDCERS plans to pursue the sale of two assets, valued at $27 million, once the market improves. Two real estate assets were sold in 2020, while the remaining two were delayed because of the coronavirus pandemic, according to the system’s core real estate rebalancing program.
  • SDCERS’ real estate allocation sits at 12 percent, surpassing its 11 percent long term target allocation, but behind its medium-term target allocation of 13 percent, according to the investment plan.

Elizabeth Crisafi serves as SDCERS’ chief investment officer, a position she’s held since 2009. She has been with the pension for nearly 13 years, according to LinkedIn. Prior to joining SDCERS, Crisafi was the president and chief executive of Crisafi Investment Management.

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