The Vermont Pension Investment Committee (VPIC) has unveiled a strategic investment plan for the next several years.
According to a document outlining a new pacing model, Vermont has no plans for new commitments in 2020; however, the pension plan has earmarked $35 million for value-added or opportunistic real estate funds in 2021.
The noncore sector offers an opportunity for outperformance and is a compelling opportunity given current market conditions, the pension fund stated in the new investment pacing plan, dated Nov. 19. VPIC currently has a 3 percent target allocation to noncore real estate, with a target total real estate exposure of $201 million.
In addition, VPIC’s current substrategy allocations are 81 percent allocated to opportunistic real estate and 19 percent to value-added real estate. In an effort to increase diversification, in the coming years the pension fund will look to even out the long-term substrategy allocations to 50 percent to opport
