Ohio Public Employees Retirement System (PERS) has approved an increase to its real estate allocation target from 10% to 12%, according to a meeting document.

The $124bn (€115bn) pension fund told IPE Real Assets that “Ohio PERS wanted to increase its exposure to real estate as an inflation hedge, to enhance our returns and diversify our portfolio and because it allows us to be more opportunistic than with the previous asset allocation.”

Ohio PERS last made a real estate allocation increase in 2010 when the allocation was moved from 8% to 10%.

The latest increase to the real estate was made as part of a 6% allocation to the pension fund’s alternatives portfolio following an end to the pension fund’s allocation to hedge funds.

Ohio PERS believes making more capital available for other less liquid investments would lead to higher returns in line with the pension fund’s expectations.

Ohio PERS revealed in its 2023 investment plan that it will be seeking attractive core and non-core real estate fund investment opportunities, including secondary opportunities that may arise as some limited partners seek liquidity.

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