Alaska Permanent Fund Corporation (APFC) is planning to make a 1% increase to its real estate allocation per year over the next three fiscal years.
The $81bn (€70bn) sovereign wealth fund said in a meeting document that it has increased its real estate allocation from 7% to 8% for its fiscal 2022 year ending 30 June.
The 1% increase per year will continue until fiscal 2025 when APFC’s real estate allocation will be increased from 10% to 12%.
According to Callan, the sovereign wealth fund’s investment consultant, gradually increasing private real estate exposure will modestly improve the risk/return profile of APFC policy target over time.
APFC’s real estate investment strategy includes investing directly, via funds, through separate accounts and by using an internally managed real estate investment trust portfolio.
The sovereign wealth said in the meeting document that it recently made a $250m commitment to Realterm Logistics Income Fund, an open-ended US industrial fund.
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