Rhode Island to invest up to $380m in real estate

The $8.2 billion Employees’ Retirement System of Rhode Island is looking to invest $100 million into core real estate in each of the next two years and $180 million into noncore real estate over the next two years in an effort to continue to invest toward a 75/25 core/noncore split, according to its latest real estate pacing plan.

The real estate portfolio, which exceeded its benchmark in 2013 with a 13 percent return despite a focus on core funds, represents about 5–6 percent of the total ERSRI portfolio including unfunded commitments from the past 18 months, still short of the 8 percent target allocation to the asset class. ERSRI’s real estate portfolio is slightly underweight to retail, industrial and apartments and slightly overweight to hotel and office, noted David Glickman of Pension Consulting Alliance, the pens