Seattle City Employees' Retirement System committed up to $20 million to Stonepeak Infrastructure Fund IV.
The $3 billion pension fund's board approved the commitment to the infrastructure fund managed by Stonepeak Infrastructure Partners at its meeting Thursday, said Jason Malinowski, chief investment officer.
The pension fund previously committed $15 million to Stonepeak Infrastructure Fund III in 2017 and $8 million to Stonepeak Infrastructure Fund II in 2015.
As of Sept. 30, the actual allocation to infrastructure was 1.2%; the target is 3%.
Separately, the board approved rebalancing its investments in three open-end core real estate funds to about $120 million each.
Currently, the pension fund's investments in the J.P. Morgan Strategic Property Fund, managed by J.P. Morgan Asset Management, the AEW Core Property Trust, managed by AEW Capital Management, and the Heitman America Real Estate Trust, are $143 million, $76 million and $69 million, respectively.
SCERS originally invested in the AEW and Heitman funds in 2013 and limited their allocations because of their limited track records, but staff recommended in a Jan. 30 memo to the pension fund's investment committee to balance the investments more evenly to reflect AEW and Heitman's strong track records and further diversification into high-quality real estate.
The memo also recommended increasing the total investment in core real estate to rebalance the portfolio closer to the 12% target. The current allocation is 10.9% of the overall pension fund.
The funding source of the additional allocation has yet to be determined.
