By Muskan Arora
The $26.5B Oregon Public Employees Retirement Fund has
earmarked pacing of up to $750M for its real estate portfolio and $1B for its
real assets portfolio.
At the recent state treasury meeting, the
pension plan disclosed its plans to make three to six allocations this year,
with each commitment ranging from $100M to $150M.
With a long-term strategy to maintain an
overweight in industrial and multi-family properties, the pension plan is also hiking
exposure to grocery anchored and necessity-based retail assets.
The real assets plan includes committing to
three to five funds between $150M to $350M through open or closed-end funds and
co-investments. During this period, most capital will be placed in infrastructure
investments.
Last year, the pension plan committed $775M
to real assets, with a focus on infrastructure, as per the meeting materials.
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By May the pension plan is looking to start
its search for a new investment consultant for its real assets portfolio, as
the contract with the current consultant Aksia will expire at the end of 2025.
Oregon PERF’s infrastructure exposures comprise
21% allocation to renewable energy, 17% to digital infrastructure, 14% in
upstream energy and 10% in transportation. The portfolio is concentrated on
investments in North America, followed by Europe, Asia-Pacific and Latin
America.Â
The pension plan returned 6.12%, 4.13% and 8.21% for its 1-,3-, and 5-year returns against the benchmark of 11.49%, 5.41% and 8.88%.Â
