Kansas City pension fund agrees to consider value-add real estate opportunities

The $1.14 billion Kansas City (Mo.) Employees’ Retirement System has agreed to look into opportunities in value-add real estate in an effort to further diversify the pension fund’s real assets mandate, confirmed Barbara Davis, retirement systems executive officer.

According to Davis, there are currently no definitive plans to add a value-add real estate mandate to the pension fund’s asset allocation. However, if such an opportunity is identified, the fund’s consultant RVK could potentially make a recommendation to the board at a later time.

The fund currently has a 10 percent ($113 million) allocation to the real assets portfolio, which is comprised of real estate and infrastructure investments.