Kansas Public Employees Retirement System (PERS) is planning to increase its allocation for real estate from the current 13% to 15% over the next two years.
The pension fund disclosed in a meeting document that it intends to boost the allocation to 14% at the beginning of 2024 and then move it to its long-term allocation of 15% the following year.
The plan is to help further diversify the $25bn (€22.8bn) pension fund’s total investment portfolio, provide long-term inflation protection, and outperform the average annual total return rate of its real estate benchmark.
Kansas PERS has 75% of the portfolio benchmarked against the NCREIF ODCE index and 25% of the portfolio benchmarked against the NCREIF ODCE plus 3% index.
As previously reported, Kansas PERS expects to invest up to $200m in non-core this year as the pension fund rebalances its core property portfolio.
So far, the pension fund has made two $60m commitments to the AEW Real Estate Partners IX and the Waterton Residential Property Venture XV funds.
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