The Pennsylvania State Employees’ Retirement System (SERS) has approved a new investment policy and asset allocation target and moved to hire a new chief investment officer, according to a pension fund news release.
According to the policy, the real estate portfolio is looking to achieve its benchmark return of 90 percent NCREIF Fund Index – Open End Diversified Core Equity and 10 percent FTSE NAREIT U.S. Real Estate Index over five-year periods. The real estate portfolio will comprise of nontraditional investments made in the form of individually managed accounts and pooled investment vehicles. They will be organized to invest in private market equity and debt investments in real estate and real estate–related companies and public market investments in REITs and REOCs, according to SERS.
SERS anticipates that approximately 35 percent of its real estate program will be targeted to core investments, 55 percent targeted to noncore investments (value-add and opportu
