ARMB outlines 2022 real estate pacing plan

The US public pension aims to invest $535 million in order to grow its core real estate portfolio.

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Institution: Alaska Retirement Management Board
Headquarters: Juneau, United States
AUM: $33.55 billion
Allocation to real estate: 12.36%

Alaska Retirement Management Board has set out its proposed 2022 real estate commitment pacing plan at its September 2021 board meeting, a contact at the pension informed PERE.

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Highlights from ARMB’s September 2021 board meeting:

  • ARMB’s real estate portfolio includes two core separate accounts, three core open-end commingled funds and 14 non-core commingled funds. These investments accounted for approximately 72 percent of ARMB’s real estate portfolio. As of June 2020, its real estate portfolio was valued at $1.9 billion.
  • The pension’s real estate portfolio has benefited from being overweight in apartment and industrial.
  • ARMB’s primary focus is on income producing core real estate achieved through core separate accounts and open-end funds. It also desires to improve diversification through portfolio growth of its UBS and Sentinel separate accounts.
  • ARMB’s separate accounts are expected to focus further investments on the multi-family sector. It plans to increase its UBS separate account allocation by $140 million which is targeting apartment properties within a multi-property-type discretionary mandate. It also allocated $125 million to Sentinel real estate in 2020 to increase its separate account apartment portfolio.
  • The pension plans to allocate $400 million to core real estate in order to achieve a 35 percent target allocation of its real estate portfolio. It plans to add investments incrementally over time and expects to reach its allocation target in at least one year.
  • The pension plans to commit an additional $135 million to core open-end funds while considering both, existing and new funds. It will also consider new strategies selectively for its non-core allocation.

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Notable real estate commitment made by ARMB in 2021 was $50 million to Almanac Realty Securities IX. Zachary Hanna is the chief investment officer and has held this position since September 2020. He joined the pension as a state investment officer and manager of private equity and absolute return in December 2003.

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