Kansas City (Mo.) Employees’ Retirement System hired J.P. Morgan Asset Management to run up to $55 million in real assets strategies, said Richard Boersma, executive officer.
The $1.1 billion pension fund hired the manager after establishing a new real assets allocation of 10%, which includes the existing 5% real estate allocation, Mr. Boersma said. JPMAM also manages the pension fund’s entire real estate portfolio. The new real assets allocation will include the pension fund’s first-ever investments in infrastructure.
Over time, the new allocation will be funded by reductions in the domestic equity target to 25.5% from 28% and the fixed-income target to 23.5% from 26%. No managers will be terminated.
Mr. Boersma said there likely will be additional exposure to real estate as well, but no specific plans have been made yet.
Investment consultant Aon Hewitt Investment Consulting assisted.
