District of Columbia Retirement Board increases allocation to real estate

The District of Columbia Retirement Board (DCRB) has approved a new asset allocation policy, according to a document from the fund’s March 18 meeting.

The new asset allocation portfolio mix increases assets that provide for downside protection, while increasing the sources of yield outside of public fixed income. The most notable changes to the new targets include increasing real estate to 7 percent from 6 percent, increasing infrastructure to 6 percent from 3 percent, and creating a dedicated private debt portfolio with a 3 percent allocation.

The board voted nine to one in favor of the motion. The trustee that opposed said her negative vote was because of the cost involved and the need to hire additional managers, when there were already several people doing investments in-house.