Alaska Retirement Management Board (ARMB) is planning to reduce its weighting to fixed income in favour of its real assets portfolio.

The pension fund said in a meeting document that it intends to lift its real assets portfolio from 13% to 14% as it cuts fixed income by 1%.

ARMB said it expects the real assets portfolio to provide inflation protection, diversification and strong returns with a high cash flow component.

Core and non-core real estate account for 35% of the real assets portfolio which has 25% of the assets invested in farmland, 15% each for infrastructure and real estate investment trusts and a 10% for timber.

The pension fund said in the meeting document that it recently approved a $50m commitment to Almanac Realty Securities IX, a fund which mostly provides growth capital for US real estate operating companies. ARMB has also committed $50m to KKR Real Estate Partners Americas III a US-only opportunity fund.

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