SDCERA to reduce its private equity target allocation

The US public pension is targeting a 6% allocation to the asset class by 2021.

Institution: San Diego County Employees’ Retirement Association
Headquarters: San Diego, United States
AUM: $11.90 billion
Allocation to alternatives: 20.90%

San Diego County Employees’ Retirement Association has lowered its target allocation to private equity from 8 percent to 6 percent of its total investment portfolio, according to the revised Investment Policy Statement presented at its June Retirement board meeting.

The pension believes that with the current valuation of private equity along with single digit returns to private assets since inception, it would be prudent to reduce allocation to private equity while increasing investments in public equity markets.

As illustrated below, the US public pension currently allocates 20.90 percent of its investment portfolio to alternative investments, of which 6 percent is allotted to private equity.

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