Alaska Retirement Management Board’s (ARMB) real assets investment plan for the 2026 fiscal year involves increasing its allocation to infrastructure and real estate to target higher returns and diversify, while reducing exposure to farmland and timber.
The $46.94bn (€40.3bn) pension fund disclosed in a board meeting document that it plans to increase its non-core real estate target from 5% to 7% of its real assets portfolio for the fiscal year that began 1 July, a change that could result in $197m in new capital commitments.
As part of the plan, ARMB said it has already made a $50m commitment to Sculptor Real Estate Fund V.
The pension fund’s strategy for core real estate involves hiring one or more core/core-plus managers to improve returns and diversify the open-ended portfolio, a change expected to increase the portfolio’s net asset value by $89m.
The allocation for private infrastructure will be increased from 20% to 23% for the real assets portfolio, resulting in a projected increase of $147m in net asset value.
The proposed targets for farmland and timber will be dropped by 2% and 3% respectively. Managers will accomplish this reduction by pruning their portfolios of non-strategic assets.
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