Ohio Public Employees Retirement System (OPERS) could increase its allocation to real estate as a result of an asset-liability review.

The review is being carried out by investment consultant NEPC and, according to a board meeting document, it could result in the pension fund raising its target allocation from 10% to 12%.

NEPC is to present the results of the study to the OPERS board in March.

Towards the end of last year, the $101bn pension fund was shown to be below its current 10% target allocation. According to a November board meeting report its real estate porfolio was valued at $7.4bn, close to 7% of its total assets.

In March 2018, IPE Real Assets reported that OPERS could become under-allocated to real estate as it acknowledged the difficulty of investing in the asset class at that time without taking undue levels of risk.

Separate accounts represents 57.7% of the pension fund’s real estate portfolio with open-ended core and close-ended funds making up 26.5% and 15.7%, respectively.