By Muskan Arora
The $28.4B
Kansas Public Employees Retirement System invested up to $440M to its real
assets sleeve at its recent meeting.
It
committed up to $210M to Lyme Forest Fund VI, an open-ended timberland
fund. The Lyme fund is focused on investments within natural forest
timberland investment opportunities across the U.S. Through the allocation, the
Kansas PERS will add hardwood timber exposure to its real assets' portfolio.
The pension plan also committed up to $70M to IIF Hedged, an open-ended infrastructure fund. The board made its first allocation of $100M to the fund in 2016. The fund invests in Canada, the United Kingdom and Cayman Islands with a focus on exploration, production, refining, utility and infrastructure sectors.
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A third commitment approved by the plan's board was up to $75M to LaSalle Property Fund, an open-ended fund that was already among Kansas PERS' core real estate portfolio. The LaSalle Property fund focuses on investments in residential and industrial sectors. This additional investment in the plan's core real estate portfolio will help the portfolio remain near the target allocation mix of 75% core and 25% non-core.
Lastly, the
pension plan approved a commitment of up to $85M to the Principal Data Center
Growth & Income Fund, which focuses on investments in leased properties and
new developments across the US. The fund’s portfolio includes
leased buildings and adjacent, entitled land suitable for future developments
with assets located in Dallas, Phoenix, Chicago and San Antonio.
On March 28, 2025, the KPERS Board approved rescission of
the commitment of up to $85 million to the Principal Data Center Growth &
Income Fund, L.P. adopted on November 22, 2024.
Kansas PERS
allocates 9.5% to its real estate portfolio against a long-term target
allocation of 12%. The interim target is 10%. Overall, it allocates
5.1% to its real assets’ portfolio against a long-term target of 13%, with an
interim target of 5%.
