Faced with challenges in finding real estate investment opportunities, the San Bernardino County Employees' Retirement Association is evaluating whether to reduce its allocation for the asset class to 7% from 9%, IPE Real Assets reported, citing a board meeting report.

The pension fund could still earmark $300 million of capital for new real estate investments at the lower target rate. The reduced allocation target, however, would compel the pension fund to decrease its core real estate target to 3.5% from 6% and increase its noncore target to 3.5% from 3%, according to the publication.

NEPC is the pension fund's investment consultant for the allocation review.