San Diego CERS cementing infra allocation

The $5bn San Diego City Employees’ Retirement System has refocused its private equity program but will remain committed to investing $150m in infrastructure.

The investment committee of the San Diego City Employees’ Retirement System (SDCERS) will update its so-called “private markets policy” to include an allocation to infrastructure.

A November 3 meeting agenda published online stated SDCERS, which renamed its “private equity policy,” “private markets policy,” has remained committed to investing in infrastructure.

The $5 billion retirement system in 2010 earmarked a 3% asset allocation to infrastructure. The allocation would amount to $150 million.

San Diego has not determined when an allocation would be made.

The decision to put capital toward infrastructure followed a recommendation from Ennis Knupp after the consultant had carried out a review of SDCERS.

After deciding to allocate 3% to infrastructure, Sand Diego embarked on a search for an adviser to help implement an infrastructure investment program. SDCERS in August settled on Wall Street firm Credit Suisse Croup and private equity specialist StepStone, which has a location in San Diego.

The program will use a 300 basis point benchmark against the Consumer Price Index (CPI).

In addition to infrastructure, the policy has a 5% allocation to private equity. SDCERS developed its policy to reduce risk and lessen market correlation.