Investors - JULY 2, 2014

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IPERS makes changes to real estate policy, reduces core target

by Reg Clodfelter

The $24.2 billion Iowa Public Employees’ Retirement System made a handful of changes to its real estate investment policy at its most recent board meeting, including reducing its target to core real estate.

The retirement system’s target allocation to core real estate was brought down from 95 percent of the private real estate program to 80 percent, leaving the remaining 20 percent for noncore investments and “market-driven opportunities,” including investments in private real estate debt, specialty property types (including but not limited to hotel, self-storage, senior living and raw land) and build-to-core assets. Core investments will also now be permitted slightly more leverage, increasing the policy limit from 35 percent at the manager portfolio level to 40 percent.

IPERS will no longer limit its total new allocation to real estate in a calendar year to 1.5 percent of the total

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