Return to search

Penn SERS revises its real estate target allocation

The US pension fund has reduced its target allocation for private real estate program.

Institution: Pennsylvania State Employees’ Retirement System
Headquarters: Harrisburg, US
AUM: $37.9 billion
Allocation to alternatives: 26%

Pennsylvania State Employees’ Retirement System has updated its policy target allocation, according to pension’s July 2021 board meeting press release.

The $37.9 billion pension fund has reduced the private real estate policy allocation by 1 percent, resulting in the new policy target of 7 percent. The market value of its real estate program may reduce from $3.3 billion to around $2.65 billion to reflect the new policy target.

SERS anticipates, approximately 35 percent of the real estate program will be targeted to core investment, and 55 percent will target non-core, value-add and opportunistic style investment. The remaining 10 percent will be for REITs transactions.

Also in the press release, Pennsylvania State Employees’ Retirement System board has announced James Nolan as the new chief investment officer. Nolan will be replacing Seth Kelly, who resigned from the position in June.

As illustrated below, Penn SERS recent private real estate commitments have targeted well-diversified strategies, sectors and regions.

Platinum subscribers may click here for the investor’s full profile, including key contacts, allocation strategy and fund investments.