School Employees Retirement System (SERS) of Ohio has reduced its real estate allocation target from 13% to 7% as part of a wider revision of its asset allocation ranges.
The $22.7bn (€19.4bn) pension fund disclosed in a board meeting summary that the decision to cut its $2.2bn real estate allocation follows an asset liability review conducted by internal investment staff and consultant Wilshire Associates.
The pension fund is expected to invest additional capital into infrastructure following a target allocation increase from 7% to 10%. Currently, the infrastructure portfolio is valued at $1.6bn, representing 7.1% of the pension fund’s total assets.
Ohio SERS told IPE Real Assets that a plan to restructure its real estate and infrastructure portfolios will not be formalised until the fiscal year 2027 investment plan is presented for board review, which is expected at the May meeting.
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