PA PSERS Commits $500M to Real Estate; Approves New Target Asset Allocation Mix

The Pennsylvania Public School Employees’ Retirement System has approved two real estate investments totaling up to $500 million.

$200 million was committed to TCI Real Estate Partners Fund IV, a real estate debt fund managed by TCI Fund Management. Another $300 million was committed to the opportunistic real estate fund, Brookfield Strategic Real Estate partners V.

Aksia assisted with the real estate investments.

An interim strategic asset allocation mix was also approved at the August 11 meeting. Investment Grade Fixed Income was increased by 5%, the public real assets target was decreased by 4%, the absolute return target of 4% was eliminated, and net leverage was brought to 0%. 

Approved at the meeting:

  • Public Equity: 30%
  • Private Equity: 12%
  • Public Fixed Income: 27.5% (+0.5% )
    • Investment Grade: 14% (+5%)
    • Credit-Related: 4.5% (-1.5%)
    • Inflation Protected: 9% (-2%)
  • Private Credit: 6%
  • Public Real Assets: 12.5% (-4%)
    • Infrastructure: 5%
    • Commodities: 5% (-2.5%)
    • Real Estate: 2.5% (-1.5%)
  • Private Real Assets: 12%
  • Absolute Return: 0% (-4%)
  • Net Leverage: 0% (+7.5%)

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Written By: Koncheng Moua, Director of Data Management and Strategy

Koncheng Moua is the Director of Data Management and Strategy at Dakota.