Sacramento County Employees鈥� Retirement System (SCERS) has revealed it has filed $49m (鈧�44.7m) worth of redemption requests from the Jamestown Premier Property Fund and the Clarion Lion Properties Fund as it rebalances its real estate portfolio.
SCERS said it is redeeming the full $18.4m interest it has in the Jamestown fund and will take $31m out of the $155.5m it has invested in the Clarion Partners fund.
In June this year, 91传媒在线 reported that the pension fund was planning to redeem its investment from two of its core open-ended real estate funds, having become over-allocated to real estate. At the time, real estate accounted for 9.5% of the pension fund鈥檚 $9.24bn of assets, above its target allocation of 7%.
Steve Davis, the pension fund鈥檚 CIO, said the two funds were selected in order to adjust the pension fund鈥檚 aggregate geographic and property-type exposures.
鈥淭he office exposure and concentrated exposure in New York City was lowered mostly through the Jamestown reduction,鈥� he said.
鈥淭he primary reason for the Clarion reduction was because it was an outsized allocation relative to other core funds in the portfolio.鈥�
As at June this year, the pension fund had invested 9.5% of its total investment portfolio in real estate. This compares to a 7% target allocation for the asset class and an acceptable range of 5% to 9%.
