Connecticut Retirement Plans and Trust Funds has formulated a real estate pacing plan for 2026 with total investments of up to $1.2bn (€1bn), according to a recent board meeting document.
The goal with this level of commitment is to assist the pension fund’s target of a 10% allocation for real estate, which the investor hopes to reach by 2027.
Connecticut had invested 6.2% of its total plan assets in real estate through June of this year.
The new activity in 2026 is projected to occur through the issue of five to seven total commitments.
The pension fund’s favoured property sectors continue to be overweight to multifamily and to selectively invest in niche sectors and strategies and increase their allocation to industrial assets. It will remain underweight to office assets.
Another goal for Connecticut is to add to its non-core exposure. Its non-core weight stood at 47% through the first half of this year. This puts it approximately 800 basis points below its 55% target for the sector.
The pension fund is also looking to reduce its exposure to core assets. It has issued redemption requests for its open-ended investments totaling $351m. Through September, the pension fund received $80m of the capital.
Connecticut has established an infrastructure pacing plan for 2026 for as much as $800m, according to the pension fund.
This capital will be placed into three to five commingled fund commitments. The pension fund is expecting to target opportunities across the risk spectrum with a slight bias toward continuing to build out the core exposure.
Its favoured sectors centre on energy transition and digital infrastructure. Another potential strategy is to evaluate existing open-ended funds for additional commitments.
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