Key Takeaways
- • Ohio PERS committed $1.7 billion across three real asset funds, diversifying exposure to core and core-plus real estate strategies in U.S. markets.
- • IDR Investment Management's Core Property Index Fund received the largest allocation at $500 million, tracking the NCREIF NFI-ODCE Index with emphasis on property-type and regional diversification.
- • Invesco U.S. Income Fund secured $300 million to deploy in well-leased multifamily, office, retail, and industrial assets in major U.S. markets and coastal regions.
- • BGO US Core Plus Fund received $200 million targeting industrial, multifamily, and office/life sciences properties across the United States.
- • The deployment reflects Ohio PERS's strategic shift toward real asset allocation, strengthening its diversified holdings beyond traditional equity and fixed-income portfolios.
Summary
The Ohio Public Employees Retirement System (PERS) has allocated $1.7 billion across multiple real asset funds, signaling a deliberate institutional capital commitment to diversified property strategies. This deployment reflects the pension fund's broader asset allocation strategy to balance returns and risk exposure within its real estate portfolio.
IDR Investment Management received the largest commitment at $500 million for its Core Property Index Fund, an open-end, core fund structured to track the NCREIF NFI-ODCE Index. The fund's design mirrors the benchmark's key metrics, including property-type weightings, regional diversification, property count, leverage ratios, and occupancy rates, positioning it as a passive-to-core indexed solution for institutional investors seeking NFI-ODCE-aligned performance.
Ohio PERS also committed $300 million to Invesco U.S. Income Fund, a core-plus strategy targeting well-leased multifamily, office, retail, and industrial assets concentrated in major U.S. markets and coastal regions. This allocation provides exposure to stabilized income-producing properties with moderate value-add positioning. Additionally, BGO US Core Plus Fund received $200 million to deploy in industrial, multifamily, and office/life sciences properties across the United States, further diversifying the pension fund's real asset exposure into life sciences—a sector increasingly attractive to institutional investors seeking secular growth drivers.
Collectively, these commitments demonstrate Ohio PERS's confidence in core and core-plus real estate strategies during the current market environment. The distribution across multiple fund managers and strategies reflects institutional best practices in diversification, reducing concentration risk while gaining exposure to different property types and geographic submarkets.
IDR Investment Management received the largest commitment at $500 million for its Core Property Index Fund, an open-end, core fund structured to track the NCREIF NFI-ODCE Index. The fund's design mirrors the benchmark's key metrics, including property-type weightings, regional diversification, property count, leverage ratios, and occupancy rates, positioning it as a passive-to-core indexed solution for institutional investors seeking NFI-ODCE-aligned performance.
Ohio PERS also committed $300 million to Invesco U.S. Income Fund, a core-plus strategy targeting well-leased multifamily, office, retail, and industrial assets concentrated in major U.S. markets and coastal regions. This allocation provides exposure to stabilized income-producing properties with moderate value-add positioning. Additionally, BGO US Core Plus Fund received $200 million to deploy in industrial, multifamily, and office/life sciences properties across the United States, further diversifying the pension fund's real asset exposure into life sciences—a sector increasingly attractive to institutional investors seeking secular growth drivers.
Collectively, these commitments demonstrate Ohio PERS's confidence in core and core-plus real estate strategies during the current market environment. The distribution across multiple fund managers and strategies reflects institutional best practices in diversification, reducing concentration risk while gaining exposure to different property types and geographic submarkets.
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