District of Columbia Retirement Board (DCRB) is doubling its infrastructure allocation from 3% to 6% and has raised its real estate allocation from 6% to 7%.
The $10.1bn (€7.3bn) pension fund told IPE Real Assets that the low level of interest rates across the bond markets “compels a plan like ours to remain increasingly focused on an even broader range of income-producing and opportunistic assets”.
That was definitely a factor in the decisions surrounding the new asset allocation, it said.
Currently, the pension fund’s infrastructure portfolio is valued at $64m, representing 1% of the total investment portfolio. At the end of last year, the real estate portfolio was valued at $595.5m, representing 6% of its total plan assets.
The pension fund has already approved a $100m commitment to Blackstone Property Partners, an open-ended core-plus fund with a $54.2bn total investment value.
The pension fund said it has a ”long-standing and well-serving commitment to public and private real estate, into which Blackstone Property Partners fits neatly”, especially its large-scale core plus focus.
“Our diverse real estate portfolio provides important income and opportunistic return expectations across domestic and international holdings and has therefore been a key focus over the past year or so, especially given the impact the pandemic has had on the sector,”
To read the digital edition of the latest IPE Real Assets magazine click here.