Montana Board of Investments (BOI) has proposed increasing its target allocations to real estate and real assets.
According to a board meeting report, the pension fund’s investment staff and consultant RVK have recommended raising real estate from 10% to 11% and real assets from 5% to 6%.
Montana BOI increased its real estate target allocation from 9% to 10% last year.
The report said real assets and real estate both offer attractive total returns with steady cash flows and strong diversification from its equity exposure.
The pension fund has also committed $100m (€95m) to Sweet Grass-Equus, a fund managed by Equus, according to a filing with the Securities and Exchange Commission (SEC).
Equus is known for value-add investments in residential, office and industrial sectors and Montana BOI is currently focusing on ‘high-conviction’ real estate managers while reducing its exposure to core open-ended funds.
The pension fund also committed $100m to the CBRE Musselshell Infrastructure Investments, a fund managed by CBRE Investment Management and has raised $152.8m, according to an SEC filing.
