Iowa Public Employees’ Retirement System, Des Moines, is looking to commit a total of up to $400 million to non-core real estate funds and other non-core real assets funds.
The $40.1 billion pension fund issued an RFP for non-core real assets funds because of its board’s recent decision to increase the target allocation to private real assets, said Shawna Lode, IPERS spokeswoman, in an email.
The pension fund is seeking managers that provide private non-core funds because it currently has little exposure to non-core strategies within its overall private real assets allocation, according to an RFP posted on its website.
The pension fund will not consider core real estate or other core real assets strategies, according to the RFP. Other real assets funds the RFP cites are farmland, infrastructure and timber strategies. IPERS will consider both open-end commingled funds and closed-end commingled funds and/or separate account offerings. Open-end funds must have at least $1 billion in net asset value, according to the RFP.
The pension fund’s investment board at its Sept. 22 meeting approved raising the target to private real assets to 9.5% from 8.5%. Also at that meeting, the board approved raising the target to private equity to 17% from 13% and reducing the targets for domestic equities to 21% from 22%, fixed income to 19% from 20%, international equities to 16.5% from 17.5%, global smart beta to 5% from 6%, and public credit to 3% from 4%.
Targets that remain unchanged are private credit at 8% and cash at 1%.
The RFP is available on IPERS' website. Proposals are due at 4:30 p.m. CST on Feb. 10. A timeline for selections was not provided.