The $31.4 billion
Iowa Public Employees’ Retirement System plans to invest approximately $300 million in private real assets in calendar year 2019, with real estate investments receiving the bulk of any new private real assets commitments, according to investment board meeting notes.
IPERS staff, however, is skeptical that many core opportunities will become available that meet the fund’s 5 percent real return hurdle.
In addition, CIO Karl Koch reported that all asset classes were within policy ranges as of Nov. 23, 2018. He also reviewed the importance of active risk diversification and then presented the board with a risk allocation/restructuring plan for the public real assets programs. The meeting concluded with the termination of BNP Paribas’ $730 million active TIPS strategy. The assets will be invested in an existing Blackrock passive TIPS index fund.
IPERS has a target allocation to private real assets, which includes real estate, of 7 percent.
