School Employees Retirement System of Ohio (Ohio SERS) is increasing its real assets portfolio from 15% to 17%.
The $15.24bn (€14bn) pension fund told IPE Real Assets that the increased allocation – which follows an asset allocation review – is expected to help improved income returns within the real assets portfolio.
The new allocation for the real assets portfolio will mean that the pension fund now has an additional $300m capital to invest in real estate and infrastructure globally.
The pension fund for the past few years has been investing capital through a mixture of funds in both asset types.
The new allocation for real assets is partly coming from the former 10% allocation that was established for the pension fund’s multi-strategies/hedge funds asset class.
This allocation has been eliminated and will be moved into a mixture of real assets, 2% to global private equity, 5% for a newly created private credit and 1% for cash.
The new asset allocation will be implemented in the 2021 fiscal year starting in July.