Connecticut proposes 2023 pacing plan for real estate asset class

The $44.7 billion Connecticut Retirement Plans and Trust Funds (CRPTF) has proposed a pacing plan for 2023.

The state of Connecticut currently has a current allocation to real estate of 8.6 percent, with total exposure of 12.5 percent — which was determined by adding unfunded commitments to the current net asset value. The new pacing plan would build toward a 10 percent strategic allocation to real estate, as well as other targets to other asset classes. Connecticut modeled three scenarios for the plan, with total plan-level net growth rates of 3 percent, 4 percent and 5 percent.

The plan also seeks to reduce the current overweight to core real estate and maintain regular annual commitments to value-add and opportunistic strategies. Core strategies are typically open-ended in nature, providing some degree of liquidity. The pacing plan assumes sales/redemptions of core investments averaging $230 million per year over the next four years. Noncore strategies are typical