Tacoma Employees contributes $100m to IDR Core Property Index Fund

The Tacoma (Wash.) Employees' Retirement System (TERS) has approved a $100 million commitment to the open-ended IDR Core Property Index Fund, which is managed by Investors Diversified Realty and benchmarked against the NFI-ODCE index.

A spokesperson for the pension fund confirmed that the investment completes a directive that TERS adopted in 2019 — the adoption of a long-term 10 percent strategic asset allocation to private core real estate. The goal was to retain exposure to real estate while reducing TERS’s public equity beta.

TERS has interim targets of 5 percent to private core real estate, 4 percent to U.S. REITs and a strategic 10 percent target to private core real estate. As of March 31, the pension fund had a 5.7 percent allocation to private core real estate and a 3.9 percent allocation to U.S. REITs.

The 5 percent commitment to the passive IDR Core Property Index Fund will help bring TERS’s passive allocations to more than one-third of the portf