Pennsylvania Public School Employees Retirement System (PSERS) has set its 2022 real estate pacing plan at $600m (€519.8m) to help lower its private real estate allocation from 8% to 7%.
As previously reported, the $66bn pension fund adjusted 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.
Hamilton Lane, the pension fund’s investment consultant, said in a meeting document that sticking with a consistent lower will gradually help reduce the allocation further towards the 7% target within a 5-year period.
PSERS has a history of investing in both core, value-add and opportunistic funds targeting investments in the US and internationally.
According to the meeting document, PSERS has set a $400m pacing plan for infrastructure in 2022. This would be a $100m increase over the amount set for 2021.
PSERS previously said it was planning to increase its allocation to private infrastructure from 1% to 4% within a five-year period.
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