Iowa Public Employees Retirement System (PERS) has raised its private real assets allocation target from 8.5% to 9.5%, according to the $40.6bn (€41.2bn) pension fund’s meeting document.
The new allocation, which is being recommended by consultant Wilshire Advisors, is expected to allow the pension fund to invest more capital in real assets.
In 2020, Iowa PERS increased its allocation target from 7.5% to 8.5%.
The real assets portfolio – which comprises real estate, infrastructure, timber and farmland assets – is currently worth $3.48bn, representing around 8.6% of the pension fund’s total assets.
With the exception of a $294m investment in the Brookfield Super Core infrastructure fund, Iowa PERS mainly invests in real assets via separate accounts strategies.
The pension fund’s real estate portfolio includes a $916m separate account relationship with RREEF/DWS, $900m with Invesco, $544m with Clarion Partners and a $540m separate account portfolio with UBS Realty Investors.
The other separate accounts include a relationship with Forest Investment Associates worth $202m and an $85m portfolio managed by UBS Farmland Investors.
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