Alameda County Employees' Retirement Association, Oakland, Calif., altered the structure of its 5% target real assets allocation to increase its target to private infrastructure and lower the targets to commodities and private natural resources, confirmed Agnes Ducanes, administrative specialist, investment department.
The $8.7 billion pension fund increased the private infrastructure subasset class target to 50% from 25% and lowered the targets to private natural resources to 25% from 40% and commodities to 5% from 15%.
The subasset-class targets to listed infrastructure and listed natural resources remain unchanged at 10% each.
The board at its meeting on Thursday also approved a real assets pacing plan of $40 million each in commitments to infrastructure and natural resources funds from 2021 to 2026 to reach the increased targets.
Separately, the board also approved a private equity investment plan for 2021 to 2023. In that timeframe, the pension fund plans to make commitments to from six to eight buyout funds for a total of $225 million, five to eight venture capital funds for a combined $108 million and three to four private debt/special situation funds totaling $72 million .
As of Sept. 30, the pension fund's actual allocations to private equity and real assets were 7.5% and 4.7%, respectively; the private equity target is 8%.
Investment consultant Verus Advisory assisted.
