Allocation Strategy

The Santa Fe, New Mexico-based Public Employees Retirement Association has approved plans to allocate an additional $80 million to the asset class in 2014 with two opportunistic funds expected to be the beneficiaries.

The US attracted more than $38.7 billion in foreign real estate investment in 2013, with investors from Canada, China and Australia representing the top three international capital sources, according to a new report by Jones Lang LaSalle.

The $25.3 billion pension system has formalized its Emerging Manager Program Annual Tactical Plan, including a $100 million allocation to new real estate managers.

The $176.2 billion pension plan has made 10 commitments to eight property managers, including Clarion Partners and DivcoWest.

The $42.75 billion pension plan’s investments with three separate account managers make up more than half of its allocation to the asset class for 2014.

The largest US pension plan has approved a two percent increase to its real estate allocation, upping its target for the asset class to 11 percent.

The largest US pension plan has approved a $1 billion increase to its annual dollar hard cap for new real estate investments.

The latest investment study by Union Investment reveals that investors are still seeking a safe home for their capital, but some are accepting greater risks such as shorter leases.

The $18.77 billion state endowment has pulled one commitment, made $120 million in new commitments and disclosed plans to invest $330 million in real estate through mid-2015.

The Chicago-based pension plan expects to make its first commitments to non-US funds this year, allocating $150 million for European and Asian real estate investments.