Fresno (Calif.) City Retirement Systems is conducting shortlist searches for private infrastructure and European real estate managers.
The systems’ joint retirement board approved the shortlist searches at its Nov. 30 meeting, said Robert T. Theller, retirement administrator, in an email.
Investment consultant NEPC said in a memo to the board posted on its website that it has recommended the searches because the systems are about 3.5% of the total fund, or $130 million, below its 7% target to infrastructure, and 3.4% of the total fund, or about $128 million, below its 15% target to real estate.
“Our goal is to get differentiated exposure to our existing infrastructure and real estate investments, with a specific focus on sectors expected to benefit from long term structural tailwinds,” the memo said. “The search is expected to result in the selection of one or more managers that invest in non-core infrastructure assets and European non-core real estate.”
NEPC said in the memo it will provide staff with manager candidates in December, review finalists in March and present the board with a vote for a selection in June.
The retirement systems, which consist of the Employees’ Retirement System and Fire and Police Retirement System, have a combined $3.9 billion in assets.