IPERS increases PE target allocation

The US public pension has boosted its allocation to the asset class to 13%.

Institution: Iowa Public Employees’ Retirement System
Headquarters: Des Moines, United States
AUM: $35.4 billion
Allocation to alternatives: 22.69%

Iowa Public Employees’ Retirement System has confirmed an increase in its target allocation to private equity from 11 percent to 13 percent, according to minutes from the pension’s September 2020 investment board meeting.

IPERS’ investment board has approved a plan to strategically boost its target allocation across all its private markets assets in order to pursue higher returns than are predicted under its current target allocations.

The $35.4 billion US public pension has also increased its target allocation to private debt from 3 percent to 8 percent; and private real assets (comprising private real estate, infrastructure and agriculture) from 7.5 percent to 8.5 percent.

As illustrated below, the pension currently allocates 13.81 percent of its investment portfolio to private equity.

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