GLOBAL - The Alaska Retirement Management Board has no plans to increase investment in real estate over the next 12 months.

The pension scheme's sole real estate investment will be through a separate account relationship with UBS Realty Investors, which has $48m (€34.8m) of equity left to invest.

This could result in around $100m of total capitalisation, as leverage will be in the range of 50%.

UBS has a core investment strategy for its separate account with Alaska and looks to buy a mixture of office, industrial, retail and apartments in the US.

The asset manager has full investment discretion if it stays within the investment parameters established for the separate account. This gives UBS the final say on any transactions, without the need for the pension fund's approval.

Alaska has a real estate portfolio valued at $1.2bn as at the end of June and has invested 9.4% of its 10% targeted allocation for real estate. 

Total plan assets for the pension fund over the same time period was $13.3bn.

Alaska's total real estate allocation is 16%, including farmland, timberland, TIPS and energy.

Pension fund officials said they wanted to build up investments in these categories before adding any more to real estate.
 

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