The State of Wisconsin Investment Board (SWIB) will be looking at a potential increase in its targeted allocation for real estate, according to board-meeting documents.
The allocation could be increased from 7% to 8%, adding $1bn (€910.9m) to invest in the asset class.
This change would be the end result of an asset-allocation review conducted by the pension fund in conjunction with its investment consultant, NEPC.
A final decision on the potential real estate allocation could be made at SWIB’s December board meeting.
SWIB’s real estate portfolio was valued at $6bn as of July, covering 7% of the pension fund’s total plan assets of $96bn.
The pension fund typically structures its real estate investments to give it greater control, such as via separate accounts, where it has investment discretion and is involved in final decisions on new investments.
Other investment structures include joint ventures, limited partnerships and open-ended and closed-end funds.
SWIB invests in private and public real estate in the US and abroad.
The pension fund has an investment strategy of moving capital into a variety of property types, including core office, industrial, retail and apartment properties.
It also places capital into hotels, medical office buildings, student/senior housing, data centres, self-storage and distressed debt.