Kansas Public Employees Retirement System (PERS) is planning to increase its allocation for real estate from the current 13% to 15% over the next two years.
The pension fund disclosed in a meeting document that it intends to boost the allocation to 14% at the beginning of 2024 and then move it to its long-term allocation of 15% the following year.
The plan is to help further diversify the $25bn (€22.8bn) pension fund’s total investment portfolio, provide long-term inflation protection, and outperform the average annual total return rate of its real estate benchmark.
Kansas PERS has 75% of the portfolio benchmarked against the NCREIF ODCE index and 25% of the portfolio benchmarked against the NCREIF ODCE plus 3% index.
As previously reported, Kansas PERS expects to invest up to $200m in non-core this year as the pension fund rebalances its core property portfolio.
So far, the pension fund has made two $60m commitments to the AEW Real Estate Partners IX and the Waterton Residential Property Venture XV funds.
To read the latest edition of the latest Â鶹ӳ» Real Assets magazine click here.
