Pennsylvania Public School Employees Retirement System (PSERS) has rejigged its real estate and infrastructure asset allocation as part of a plan to retain the pension fund’s diversified portfolio and to cater for market trends.

The $59bn (€49bn) pension fund’s board has approved to lower its private real estate allocation from 8% to 7% and increase public real estate from 2% to 3%.

As at the end of last year the pension fund’s real estate portfolio – which excludes its domestic real estate investment trust portfolio – was valued at $5.7bn.

Allocation to private infrastructure is expected to be increased from 1% to 4%. At the end of the first quarter of the year, the infrastructure portfolio was valued at $2.3bn.

The changes, which are part of a broader strategic asset allocation programme, are in line with the board’s ”long-term commitment to holding a diversified portfolio while shifting around some of those assets to account for market trends”, the pension fund said.

Changes to public markets allocations are expected to be fully implemented by 1 April 2021. Changes to certain private markets allocations will occur over the next three years.

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