Teachers’ Retirement System of Oklahoma has finalised its asset allocation strategy, establishing a 3% allocation to infrastructure for the first time and reducing its real estate allocation from 10% to 8%, according to the pension fund’s board meeting document.
The proposed new allocation – which will become effective for the pension fund on 1 July – is intended to help enhance diversification across new and existing asset classes while maintaining the portfolio’s risk profile.
The $24bn (€22.9bn) pension fund’s consultant AON disclosed in the meeting document that adding infrastructure will reduce risk and increase returns whereas reducing real estate will maintain portfolio diversification.
The pension fund’s first investment into infrastructure is expected in August, with the approval of a commitment to a core infrastructure fund manager.
The real estate pacing plan for 2025 has been set at $200m. Despite setting a $100m core real estate pacing plan for 2024, Oklahoma Teachers made no commitments due to market conditions and cautious investor sentiment.
Oklahoma Teachers has set a $100m non-core real estate pacing amount for 2025.
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