Teachers’ Retirement System (TRS) of the State of Illinois has lowered its targeted allocation for its real assets portfolio from 20% to 18%.
The $63bn (€53bn) pension fund told IPE Real Assets: “TRS and its investment consultant RVK ran various allocation combinations through computer simulations, the asset allocation mix that was ultimately adopted by the board best met the needs of TRS.
“This included good portfolio growth, stable exposure to expected risk and a desired balance of liquidity and illiquidity. The liquidity of TRS is important because of the pension fund’s low funded status.”
Illinois Teachers said it has approved three new commitments into its real estate portfolio totalling $750m (€636.9m).
One of these commitments was for $250m to Walton Street Real Estate Core-Plus Fund, an open-ended US fund which targets office, industrial, retail and apartments assets. The fund targets gross returns of 8% to 10%.
Walton Street Capital declined a request to comment.
Illinois Teachers issued a $200m commitment to KKR Real Estate Americas Fund III, KKR’s latest opportunistic estate fund planning to raise up to $3.5bn.
The pension fund’s third investment was a $300m commitment to Carlyle Realty Partners IX, a US opportunity fund planning to raise $6bn.
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