South Carolina Retirement ups allocation and plans real estate rebalancing

South Carolina Retirement System is increasing its real estate allocaton from 8% to 9%.

The change, revealed in a board meeting report, would give the $31.6bn (€25.6bn) pension fund more than $300m in additional capital to invest in the asset class.

South Carolina Retirement System, which is being advised by Meketa Investment Group, is also planning to increase the core weighting of its private real estate portfolio.

Its core real estate allocation will rise from 3% to 5% of total assets, while its non-core allocation will drop from 4% to 3%.

The 1% allocation to public real estate investment trusts (REITs) remains the same.

Meketa said the new allocation would bring South Carolina Retirement System more in line with other US public pension funds, according to the boarding meeting report.

The pension fund is also considering changing its benchmark and return targets for private real estate. It currently targets 75bps above the NCREIF ODCE Gross Index, but could move to a target of 100bps above the NCREIF ODCE Weight Net Index.

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