IPERS increases private debt target allocation

The US public pension has boosted its allocation to the asset class by five percentage points.

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

Iowa Public Employees’ Retirement System has hiked its private debt target allocation from 3 percent to 8 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 set of target allocations.

The $35.4 billion US public pension has also increased its target allocation to private equity from 11 percent to 13 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 3.01 percent of its investment portfolio to private debt.

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