Kansas Public Employees Retirement System (PERS) is expected to raise its real estate allocation target from 13% to 15%, according to the pension fund’s meeting document.
The pension fund’s investment consultant, Meketa Investment, said in the meeting document that private real estate and infrastructure are expected to be more effective return-generating inflation hedges versus inflation-linked bonds.
Kansas PERS has an 8% target allocation to inflation-linked bonds. The plan is to drop it to 0%.
The new real estate allocation target is expected to take several months to be fully implemented.
Back in November last year, IPE Real Assets reported that Kansas PERS had set a real estate pacing plan of up to $200m for 2023. At the time, the real estate pacing plan was based on a 13% targeted allocation for the asset class.
Kansas PERS said it has approved a $60m commitment to Waterton Residential Property Venture XV, a real estate fund seeking to raise $2bn.
Waterton declined a request for comment.
Kansas PERS previously backed three other Waterton funds in the series.
Kansas PERS made its first 2023 real estate commitment back in March when it backed AEW Capital Management’s latest opportunistic US real estate fund with a $60m commitment.
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