The Kansas Public Employees' Retirement System, Topeka, next year is likely to begin shifting more than $500 million into real estate and alternative investments.
CIO Robert Woodard said the staff will present a plan to trustees - probably next month - to put about 5% of assets to work in real estate. If trustees approve, the fund would begin investing in real estate, through commingled funds, public or private REITs, or as a co-investor, early in 1997, he said.
The $7 billion pension fund is five percentage points below its target allocation of 10% in real estate, Mr. Woodard said.
Likewise, the fund has a target of 5% for alternatives, but only has about 1% of assets invested there, Mr. Woodard said. Once a new real estate program begins, a plan will be developed for alternatives, he said.