Plans by the Kansas Public Employees Retirement System (PERS) to increase its real estate allocation would lead to an uplift and resumption of the pension fund’s core investments.
As reported in late September, the $20bn (€18.2bn) pension fund was pausing its core real estate investment mandate for the rest of the year and was also conducting an asset-liability study, which could have implications for its existing asset allocation.
One possible outcome would be an increase in its target real estate allocation from 11% to 13%.
According to a board meeting document, the asset allocation increase – expected to be finalised in January next year – would increase the capital set aside for core real estate over the next three years from $130m to $450m.
Kansas PERS did not disclose how much more capital the pension fund would have available for non-core real estate under an increased allocation. Its current pacing plan for non-core real estate in 2020 is up to $110m.
Kansas PERS typically invests in US real estate funds.