KPERS boosts target allocation to real estate

The US public pension's target allocation to the asset class has inched up by two percentage points.

Institution: Kansas Public Employees’ Retirement System
Headquarters: Topeka, United States
AUM: $20.22bn
Allocation to alternatives: 17.9%
Bitesize: $50-100m

Kansas Public Employees’ Retirement System approved an increase to its real estate target allocation at its January 2020 investment committee meeting, a contact at the pension informed PERE.

KPERS has confirmed that its target allocation will increase from 11.0 percent to 13.0 percent, with the $20.22 billion US public pension currently having a 9.60 percent allocation to the asset class. Target allocations to fixed income and yield-driven instruments will subsequently decrease as a result of real estate’s boost within the pension’s target investment portfolio.

As illustrated below, KPERS has made two commitments to real estate funds with a 2019 vintage, which combined constitute $105 million.

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