KPERS sets investment pacing objectives for 2018
The $17 billion Kansas Public Employees Retirement System has developed an investment 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 fund’s Real Estate Portfolio Pacing report. The Townsend Group assisted KPERS in developing the schedule.
KPERS invests in both core and noncore real estate, with a heavier focus on lower-risk core investments. Townsend suggested 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 its separate account with AEW, KPERS has committed more than $650 million to six core funds since the beginning of 2012. Additional core investments now are 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