Kansas Public Employees' Retirement System officials are gearing up for possible additions to its real estate portfolio, with the state Legislature considering a loosening of investment restrictions.
A bill that would give the $8.5 billion system more freedom to invest in real estate property and commingled funds has been passed by the state Senate and will be considered by the House after sessions resume April 29.
Trustees conducted a special meeting this month where they reaffirmed the fund's 10% target allocation to real estate and reacquainted themselves with the asset class, said Robert Woodard, CIO.
The current restrictions effectively shut out Topeka-based KPERS from investing in real estate deals, he said. KPERS now has about 6% of assets in real estate with one-third of that in REITs, he said.
Also, an asset/liability study for the overall fund officially began this month. That should be wrapped up in July, he said.
KPERS' current targets are: 28% U.S. equities, 15% non-U.S. equities, 26% U.S. bonds, 11% non-U.S. bonds, 10% real estate and 5% cash.