Kentucky Public Pensions Authority, Frankfort, added a total of $300 million to two existing open-end core real estate fund investments.
KPPA investment staff made a follow-on commitment of $200 million to Harrison Street Core Property Fund, managed by Harrison Street Real Estate Capital; and $100 million to Prologis Targeted U.S. Logistics Fund, said Steven Herbert, executive director, office of investments, in a remote investment committee meeting Tuesday.
The follow-on commitments were made because the investment committee in November had approved increasing the five Kentucky pension funds' target to real estate to 10% from 5% after the completion of an asset allocation study by investment consultant Wilshire Associates.
That increase was funded by a reduction in the target to real return to 10% from 15%.
The authority, then known as Kentucky Retirement Systems, originally committed $120 million to Harrison Street Core Property Fund in 2011 and originally committed $70 million to Prologis Targeted U.S. Logistics Fund in 2013 (and made a follow-on commitment of $70 million to that fund in 2018).
As of March 31, the actual allocation to real estate was 4%.
The KPPA oversees the $8.2 billion County Employees Retirement System (Non-Hazardous), $2.8 billion County Employees Retirement System (Hazardous), $2.7 billion Kentucky Employees Retirement System (Non-Hazardous), $826 million Kentucky Employees Retirement System (Hazardous) and $332 million Kentucky State Police Retirement System.