San Diego City Employees' Retirement System adopted a new asset allocation, adding a 5% stand-alone allocation to private debt and a 4% stand-alone allocation to diversified strategies.
The board for the $10.5 billion pension fund at its May 12 meeting also boosted infrastructure, a subset of its now 15% real assets allocation, by 1 percentage point to 4%. SDCERS also cut U.S. equity by 1 percentage point to 18% and lowered global equity by 2 percentage points to 6%.
The board also reduced its opportunity fund allocation to 3% from 10%, by adding the opportunity fund's 5% managed futures sub-allocation to the new diversified strategies allocation and a 2% opportunistic credit sub-allocation to the new private credit allocation.
SDCERS' U. S fixed income allocation remains at 22%, its non-U.S. equity target stays at 12%, private equity remains at 10% and return-seeking fixed income stays at 5%.