Colorado PERA raises real estate allocation to 10%

The Colorado Public Employees’ Retirement Association (PERA) board of trustees has adopted new long-term asset allocation targets at the recommendation of its investment consultant, Aon.

Notably, the pension fund increased its real estate allocation from the current 8.5 percent to 10 percent, the culmination of a year-long study into PERA’s investment portfolio and strategy.

The new strategic asset allocation is expected to provide incrementally greater diversification in the portfolio by reducing the percentage allotted to global equity and investing more in private asset classes, with the goal to slightly lower risk and add potential for higher returns throughout time for the entire investment portfolio.

Within the alternatives asset class, the new policy increases allocations to real assets and private debt while reducing allocations to hedge funds and opportunistic investments. Yet the 6 percent overall allocation remained the same.

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