The San Bernardino County (Calif.) Employees' Retirement Association board approved a new real estate strategic plan, said Don Pierce, investment analyst for the $4.6 billion fund. It will shift targets for the $266.8 million portfolio to 50% core and 50% non-core from 65% core and 35% non-core. The new plan adds an international real estate target allocation, set at 10% of the non-core real estate portfolio. No RFPs are planned immediately as a result. The fund's overall target allocation to real estate is 10% of total assets.
The board also committed $25 million each to the Morgan Stanley Real Estate Fund V and the AMB Japan Fund, Mr. Pierce said. The investments are part of the new international real estate allocation.
Separately, the board hired its general consultant, New England Pension Consultants, as consultant for its $350 million non-discretionary private equity portfolio, Mr. Pierce said. It also committed $30 million to private equity fund Starwood Hotel Opportunity Fund and $25 million to the Lexington Middle Market Investors Secondary Fund. Funding for both investments came from cash.