Maryland State Retirement and Pension System (SRPS) has approved updated asset allocation targets for its real assets portfolio.
The $74bn (€64.2bn) pension fund disclosed in a board meeting document that the target allocation for real estate has been reduced from 10% to 9%, while the allocation for infrastructure and natural resources has been increased from 5% to 6%.
Maryland SRPS has also replaced its previous CPI-U plus 500 basis points benchmark for its infrastructure and natural resources portfolio with a custom blend comprising 85% Dow Jones Brookfield Infrastructure Index and 15% S&P Global Natural Resources Index.
For fiscal year 2027, which started 1 July, the pension fund intends to focus capital deployment on core-plus real estate strategies.
The pension fund expects to commit very little capital to its value-add and opportunistic strategy until its portfolio in the sector turns cash-flow positive, which is projected to occur within the next one to two years.
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