Connecticut Retirement Plans and Trust Funds (CRPTF) could invest $1.1bn (€1bn) in real estate, more than double the amount it planned for 2023, according to a board meeting document.
Non-core real estate will be the main focus of investment, with $950m allocated to higher-return strategies. The pension fund said it was below its target exposure to non-core.
The new commitments will made through the selective addition of new fund managers and potentially by expanding existing mandates.
Only $150m was allocated to core real estate for 2024, but this represents an increase on last year when CRPTF did not allocate any new capital to core.
The pension fund is also considering making redemptions from core open-ended funds, amounting to $180m to $280m per year over the next three years.
While CRPTF plans to invest more in real estate this year, it is actually slowing its investment in infrastructure – it plans to invest $500m in infrastructure in 2024, down from $700m in 2023.
Most of the investment ($400m) will be in core infrastructure with $100m earmarked for non-core. This is in contrast with last year, when the pension had no allocation to core infrastructure.
CPRTF said this was because it had made a significant levels of commitments to non-core infrastructure in 2023 and 2022 – $700m and $325m, respectively – and expected these to be invested over the next few years.
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