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SJCERA outlines 10-year plan for real estate investments

US pension outlines its private real estate plans at the retirement board meeting.

Institution: San Joaquin County Employees Retirement Association
Headquarters: Stockton, United States
AUM: $3.14 billion
Allocation to private real estate: 8%

San Joaquin County Employees Retirement Association has outlined its projected real estate allocations up to 2030 and plans to make an average $71 million in commitments to its value-added strategy over the next 10 years. The pension also plans to increase its allocation to real estate to 11 percent by 2026, according to an August 2020 board meeting document. 

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Highlights from SJCERA’s August 2020 retirement board meeting:

  • The institution has invested up to $50 million in Davidson Kempner Long Term Distressed Opportunities Fund V.
  • The pension plans to eliminate its opportunistic portfolio by 2027. SJCERA has a target allocation to opportunistic opportunities of 17 percent of its real estate portfolio.
  • SJCERA proposed a goal of 6 percent for its core strategy and 5 percent for its non-core strategy to achieve its 11 percent real estate allocation.
  • Meketa Investment Group recommended a proposed pacing plan for SJCERA that calls for a cautious investment approach.
  • The system anticipates a 5 to 10 percent reduction in value reported for its core funds during Q2 and Q3 but expects income returns to land between 0.5 percent and 1 percent.

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Johanna Shick is SJCERA’s chief executive officer. Prior to joining the institution in 2017, Shick worked at San Diego County Retirement Association as assistant administrator/chief benefits officer. The pension’s consultant is Meketa Investment Group.

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