San Francisco City & County Employees' Retirement System board approved a staff recommendation to increase the commitment pace for alternative investments for calendar year 2006. The fund will commit $325 million to $425 million, from $250 million to $350 million. The $14.5 billion system had 10.5% of total assets in alternatives as of Dec. 31, below the 12% target, according to a memo by consultant Portfolio Advisors.
The annual allocation was increased because the system has already committed $265 million to 10 investment funds this year, according to a staff memo to the board. Among other new investments, the system will also commit up to $30 million to First Reserve Fund XI and up to $20 million in Lightyear Fund II.
Lastly, the board approved a recommendation to begin discussions with corporations doing business in Sudan as part of the system's social investment procedures. The system has a total of $24.7 million in holdings in companies conducting business in Sudan — $10.4 million in S&P 500 index accounts and $14.3 million in actively managed accounts.