Indiana Public Retirement System (INPRS) has increased the amount it capital sets aside to invest in real assets from 7% to 10% of its total portfolio to help reach the target rate of return of the portfolio.
The $34.8bn told IPE Real Assets that it believes a higher returns expectation from real assets – which includes real estate and infrastructure – will help increase the pension fund’s chances of reaching its overall total investment portfolio rate of return target of 6.25%.
Following an asset-liability study, conducted by the pension fund’s investment consultant Verus, INPRS has lowered its target allocation to asset classes like public equity, fixed income ex inflation-linked and absolute return and lifted the real asset allocation.
INPRS said it now has $1bn of new capital available to invest in real assets.
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