Townsend assists KPERS with pacing objectives for 2018

The Kansas Public Employees Retirement System and The Townsend Group have worked together to develop a pacing schedule through 2018 that moves the real estate portfolio toward the long-term allocation of 11 percent to the real estate asset class, according to the pension funds Real Estate Portfolio Pacing report.

KPERS invests in both core and noncore real estate, with a heavier focus on lower-risk core investments. Townsend suggests that KPERS commit up to $125 million to core investments and between $80 million and $120 million to noncore investments.

To reach its allocation target while liquidating the separate account, KPERS has committed more than $650 million to six core funds since the beginning of 2012. Additional core investments are now needed to reach the target allocation for the core portfolio. To reduce exposure to the market cycle, KPERS’ investment plan is to move the real estate portfolio toward the long-term allocation over time.

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