The South Carolina Retirement System has set aside nearly $1.7bn (€1.5bn) for investment in private real estate, REITS and infrastructure.
The investments would mark the pension fund’s first forays into the latter two asset classes.
South Carolina allocated 1% of its overall investment portfolio, worth $275m, for REITs.
The initial allocation for infrastructure will be $830m in a global strategy, via funds or separate accounts.
The pension fund approved the new investments, to begin in July, at a recent board meeting.
South Carolina is looking to place capital in the strategies within three years, although it has not yet determined when it will begin searching for managers.
The new targeted allocation for private real estate is 7%, up from 5%, giving the pension fund an additional $555m of capital for the asset class.
South Carolina has previously invested in private real estate through funds and separate accounts.
The pension fund has invested in private real estate through core and value-add properties and development projects, focusing on US office, industrial, retail and apartments.