Alaska Retirement rebalances real estate, infrastructure target allocations

The Alaska Retirement Management Board (ARMB), which oversees the state’s retirement system and has $31.5 billion assets under management, is rebalancing its real assets portfolio target allocations to address the changing investment landscape in real estate and infrastructure. The new target allocations will go into effect on Oct. 1.

Core real estate and REIT holdings, which were targeted at 35 percent and 15 percent respectively, will decrease both target allocations by 5 percent. Meanwhile, ARMB is establishing goals of 5 percent each for non-core real estate and for real estate debt investments. In total, the target allocation for real estate (core + non-core + REITs + debt) will continue to be to make up 50 percent of AMRB’s real assets portfolio.

With present market conditions and the strong returns from AMRB’s infrastructure holdings, the board is increasing the real assets share of its infrastructure investments from 15 percent to 20 percent. In the fisca