San Diego City Increases Target Range to Real Estate

San Diego City Employees’ Retirement System has approved the motion to increase the target range by 10% for both core and non-core real estate funds. 

The current allocation to core real estate is 80.8%, falling outside of the acceptable target range of 60-80%. It was recommended that the target range be broadened by 10%, bringing it to 55-85%.

For non-core real estate, the current allocation is 19.2%, falling outside of the acceptable range of 20-40%. It was recommended that the range be extended to 15-45%, bringing the 19.2% allocation within acceptable range. 

The rebalancing is a short-term solution to allow for flexibility in working back toward the long-term core (70%) and non-core (30%) targets.

Aon supported the recommendation.

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