San Francisco City & County Employees' Retirement System approved increasing investments in alternatives by up to $425 million to get closer to its 16% target allocation, Norm Nickens, executive assistant to the $16 billion pension fund, confirmed Wednesday.
The pension fund's actual alternatives allocation is 13.3%.
About $1.17 billion in commitments haven't yet been invested. That money is earmarked to be invested over the next several years, Mr. Nickens said.
The alternatives allocation invests in primary and secondary interests of limited partnerships, with major sectors comprising buyout, venture capital and special situations, a report states.
Based on reported value, about 71.5% of the portfolio is invested in the U.S.; the rest is invested internationally, primarily in the U.K., Europe and Asia.