PSERS seeks $900m RE fee reduction

The Harrisburg-based public pension system is upping its co-investment allocation to cut costs.

The Pennsylvania Public School Employees’ Retirement System (PSERS) is planning to reduce $900 million in the real estate fees, aiming to cut $2.5 billion in fees across all asset classes over the next 30 years.

Within its overall real estate portfolio, the $62 billion System is both lowering its allocation to externally-managed PERE funds from 9.8 percent to 7.8 percent and expanding its commitment to co-investments from 2.3 percent to 8 percent, which enables PSERS to save an estimated $11 million per year.

PSERS is currently on the lookout for an investment professional to run its co-investment programme and to enhance the cost-effectiveness of its investment evaluation process.

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