Arkansas Teacher Retirement System (ATRS) has set its 2026 investment pacing plan and expects to invest $550m (€472m) in real assets next year, according to a board meeting report.
Nearly three quarters (73%) of the capital will be directed to real estate, including $200m for core funds.
The pension fund plans to increase its exposure to property types supported by secular trends, including residential and industrial.
It will also consider increasing its existing holdings in core real estate funds, such as the JP Morgan Strategic Property Fund, PRISA, and Morgan Stanley Prime Property Fund.
ATRS has set another $200m for non-core real estate. It will target performing assets with strong fundamentals that face capital distress or near-term debt maturities, and development opportunities to take advantage of limited housing supply and obsolete stock of industrial assets.
Another strategy is to commit capital to smaller-sized managers to complement bigger funds with larger deal sizes.
The pension fund has also earmarked $150m for infrastructure next year and plans to target mid-market power assets.
