News & Analysis

SDCERS adds new private debt allocation

The growth of the asset class was considered in the decision to allocate 5 percent of its investment portfolio towards private debt.

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Name: San Diego City Employees’ Retirement System
Headquarters: San Diego, US
AUM: $10.5 billion
New Allocation to Private Debt: 5%

The San Diego City Employees’ Retirement System voted to add a private debt allocation to its investment portfolio, according to a contact at the public pension fund.

The US public pension fund had previously not allocated private debt at all, but now it will allocate 5 percent of its investment portfolio towards private debt.

There were multiple factors cited in the consideration of the new allocation. These included the growth of the asset class as whole and the fact it has become a centerpiece in most US pension investment portfolios. Moreover, the current high yields compared with public markets, alongside less volatility, was pertinent in the decision.

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