Ohio Public Employees Retirement System (PERS) is proposing to lift its real estate allocation target from the current 10% to up to 12%, according to the pension fund’s meeting document.

Ohio PERS told IPE Real Assets that the allocation increase, being proposed by investment consultant NEPC, will not become official until the recommendation is approved at a board meeting in January 2023.

Ohio PERS mostly invests in real estate via separate accounts relationship for its defined benefit fund’s private real estate portfolio.

As of the third quarter of 2022, Ohio PERS had an $11.8bn real estate portfolio. According to the pension fund’s meeting document, the real estate portfolio recorded a three-month performance of 2.7% versus the NCREIF ODCE Index of 4.8 and year-to-date of 13.4% against the benchmark’s 21.2%.

NEPC is also proposing a new 1% allocation for private credit and an increase in private equity allocation from 12% to 15% as it cuts public fixed income from 24% to 20% and public equity by 1% to 43%.

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