UNITED STATES - Pennsylvania Public School Employees' Retirement System has decided to increase its targeted allocation for real estate from 8% to 10.5%.

Most of the increase will be funded by the elimination of the pension fund's 1.5% allocation to public REITs. 

Pennsylvania Public School plans to re-establish a REIT program once the pension fund starts receiving net distributions from private real estate, but no timetable has been established yet.

Pennsylvania Public School had a REIT portfolio valued at $690.8m (€511.5m) at the end of 2009, placed with five REIT managers in three different investment strategies.

The pension fund employed three managers for investing in global REITs: Cohen & Steers ($55.2m), LaSalle Investment Management ($42.1m) and Morgan Stanley ($202.7m).

It had one manager with a non-US REIT strategy.  This was a $148.2m account managed by European Investors.

Security Capital had ran two US-REITs.  One was for $62.4m and the preferred growth portfolio totaled $180.2m.

Pennsylvania Public School had a total real estate portfolio valued at $3.78bn at the end of 2009, which represented an 8.1% allocation to the asset class. 


 

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