School Employees Retirement System (SERS) of Ohio is to redeem capital from parts of its real estate portfolio in fiscal year 2027 to fund new infrastructure allocations, according to the pension fund’s board meeting document.
The pension fund told IPE Real Assets that infrastructure provided vital inflation protection and steady cash yields during “recent market downturns such as the great financial crisis, the COVID pandemic and the inflationary spike of 2022-2023 and has a higher return as a result”.
Ohio SERS expects the changes to both portfolios to take two years to fully implement.
For the upcoming fiscal year starting on 1 July, the pension fund has established interim allocation targets of 8% for infrastructure and 9% for real estate.
The infrastructure portfolio will target global funds and co-investments via a mix of new and existing managers.
While real estate activity will mostly involve redemptions, Ohio SERS plans to further explore future strategies, including residential, debt, secondaries and triple-net leases.
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