Pennsylvania State Employees' Retirement System, Harrisburg, will search for a real estate consultant and general investment consultant in 2023, spokeswoman Pamela J. Hile said in an email.
The $34.5 billion pension fund will issue requests for information in March for a general consultant and in May for a real estate consultant, she said. The RFIs will be issued because current real estate consultant NEPC's contract will expire on Dec. 1, 2023, and current general consultant Callan's contract will expire on Feb. 26, 2024.
Both firms will be eligible to rebid, Ms Hile said. Specific timelines for the RFI processes have yet to be determined. PennSERS posts RFPs on the state's procurement website.
As if June 30, the pension fund's actual allocation was 29.4% domestic equities, 21.1% fixed income, 17.6% private equity, 12% international developed markets equities, 8.5% real estate, 3.4% emerging markets equities, 3.3% private credit, 3% inflation protection and 1.7% cash.
The target allocation is 31% domestic equities, 22% fixed income, 14% international developed markets equities, 12% private equity, 7% real estate, 5% emerging markets equities, 4% private credit, 3% inflation protection and 2% cash.
Separately, the PennSERS board on Thursday approved commitments of up to $100 million and $50 million, respectively, to ASF IX, a secondaries fund of funds managed by Ardian, and the sidecar vehicle that will co-invest alongside the fund. It also committed up to $75 million to value-added real estate fund Oak Street Real Estate Capital Fund VI, a news release said.
PennSERS previously committed $100 million to ASF VIII in 2019 and $50 million to Oak Street Real Estate Capital Fund V in 2020.
