SORP advisers recommend shifting some real-estate exposure into infrastructure; board approves rebalancing

St. Mary's County's Sheriff's Office Retirement Plan (SORP) board heard an investment presentation July 24 recommending a greater allocation to infrastructure investments over private real estate and approved a rebalancing move intended to reduce an overweight in cash and hold funding for upcoming private credit calls.

The investment consultant presenting the portfolio update said infrastructure — broadly defined to include transportation, energy and utilities, and communications assets — can provide steadier, inflation-resistant cash flows than some real estate sectors and may better match the plan's need for downside protection and lower volatility. "We want the underlying assets. We don't want dollar movements, good or bad, to really impact our return," the presenter said when explaining why some managers hedge currency exposure.

The recommendation reflects recent private-market performance and the fund's current allocations. The presenter told the board the plan's total assets were about $171 million as of the prior Thursday and that the plan has an existing $5 million commitment to IFM's infrastructure fund. He said private real estate has lagged recent broader market returns while infrastructure shows stronger supply-demand fundamentals and historically higher risk‑adjusted returns.

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