San Diego County Employees Retirement Association will commit the $8.7 billion associations new 5% infrastructure allocation to six to 10 managers over three to five years under guidelines approved by the systems investment board, according to Johanna Shick, communications manager.
The investment vehicles can include primary partnerships, fund of funds, co-investments, secondary funds and direct investments. The portfolio will be benchmarked to the CPI plus 500 basis points. The portfolio will have 40% to 70% in North American investments, 20% to 40% to OECD countries, and 10% to 30% in non-OECD countries. General consultant Ennis Knupp assisted. No other information about when managers will be sought or chosen was available at press time.
Separately, the board committed $15 million to Trophy Property Development and $75 million to Macquarie Infrastructure Partners II. Trophy is a real estate fund investing in real estate development in China; the firm has a relationship with Chinese real estate developer Shui On Land. The associations real estate consultant, Townsend Group, assisted with the Trophy commitment; general consultant Ennis Knupp assisted with the Macquarie commitment.
The association also voted to allow Ashmore Investment Management, which manages a $450 million emerging markets debt portfolio, to include up to 50% in local currency instruments. Currently, the portfolio invests primarily in U.S. dollar-denominated sovereign and corporate debt. Ennis Knupp assisted.