Missouri pension fund commits $25m to Clarion
The Missouri Department of Transportation and Highway Patrol Employees’ Retirement System has committed an additional $25 million to Clarion Lion Properties Fund, according to Larry Krummen, CIO of the pension fund.
The $1.9 billion pension fund has been investing in Clarion’s core, open-end fund since around 2005.
The retirement system has an actual allocation to real estate of 11.2 percent, above its target allocation of 10 percent. Krummen says, “We continue to believe the real estate portfolio remains attractive from cash flow/yield perspective, and we did not want to be underweight our targeted allocation over the coming years.”
The investment was funded from cash and rebalancing of other areas of the portfolio.