Investors - MAY 9, 2014

Ohio School Employees commits $250m to infrastructure and real estate

by Reg Clodfelter

The $12.26 billion School Employees Retirement System of Ohio has committed $200 million to IFM Global Infrastructure Fund, managed by IFM Investors, and $50 million to Lion Industrial Trust, managed by Clarion Partners.

The commitments were confirmed by Tim Barbour, senior communications coordinator with Ohio SERS.

The Global Infrastructure Fund is an open-end infrastructure fund that launched in January 2010. The fund targets core infrastructure assets globally, with a specific focus on developed markets around the world, including Australia, Europe and the United States. The fund had raised nearly $3.3 billion as of January 2014, according to a filing with the SEC.

The Lion Industrial Trust is a private REIT that launched in December 2002. The core/core-plus industrial fund aims to acquire, develop, manage and sell industrial warehouse properties and land in 25 U.S. markets. The fund uses leverage up to 40 percent and has provided a total return since inception of 14.19 percent.

Prior to these commitments, Ohio SERS had 10.7 percent of its portfolio committed to its real assets allocation, all of which were real estate investments. The retirement system has a 15 percent target allocation to real assets and will house both of the recent commitments in its real assets allocation. An additional $250 million to the real assets portfolio should bring it up to approximately 12.7 percent of Ohio SERS’ total assets.

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