Texas Municipal Retirement System (TMRS) intends to issue $800m (€671m) worth of new real estate commitments this year and plans to rebalance the core investments within the portfolio.

The $34.5bn pension fund – which issued $1bn worth of real estate commitments in 2020 – said in a meeting document that the slight reduction in planned commitments for 2021 was partly because the core investments within the portfolio had been fully allocated.

The pension fund’s $2.9bn real estate portfolio comprises 64% core, 23% value-add and 13% opportunistic assets. The current TMRS real estate portfolio represents 8.8% of the pension fund’s total portfolio compared with a 10% allocation real estate target.

During the period, TMRS also intends to reduce the amount it pays in fees by placing capital into existing strategic relationships and co-investments expansions.

With the exception of apartments assets, TMRS is under-allocated to offices, retail and industrial assets.

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