South Carolina Retirement System is increasing its target allocations to real estate and infrastructure.
The pension fund has approved 1% increases for both asset classes for its fiscal 2017-18 fiscal year, according to a board meeting document.
From July, South Carolina will have a 6% allocation to real estate, providing an additional $300m (€285m) of capital for the asset class.
The pension fund, which is being advised by Aon Hewitt, is aiming to achieve a more balanced portfolio by identifying core and core-plus investments, in both equity and debt.
South Carolina’s $3.2bn real estate portfolio consisted of 32 commitments as of September 2016, 22 of which were for opportunistic or real estate debt strategies.
Three investments were core or core-plus, representing 12.3% of the real estate portfolio.
The planned new commitments to core and core-plus strategies could include commingled funds and separate accounts.
The pension fund is also evaluating the costs, benefits, risks and overall feasibility of managing core real estate internally without third-party managers.
South Carolina’s infrastructure allocation will move from 1% to 2%, although it has a longer-term target of 3%.
Infrastructure is relatively new asset class for the pension fund, which has so far invested $265m in a fund.