The $8.2 billion Employees’ Retirement System of Rhode Island is looking to invest $100 million into core real estate in each of the next two years and $180 million into noncore real estate during the next two years.
The real estate portfolio, which exceeded its benchmark in 2013 with a 13 percent return despite a focus on core funds, represents about 5–6 percent of the total ERSRI portfolio. Including unfunded commitments from the past 18 months, the retirement system is still short of the 8 percent target allocation to the asset class. ERSRI’s real estate portfolio is slightly underweight to retail, industrial and apartments and slightly overweight to hotel and office, noted David Glickman of Pension Consulting Alliance, the pension fund’s general consultant, in a recent board meeting.
The capital invested into real estate during the next two years will mostly be invested with managers that ERSRI already uses, though a few new