At its June 29 board meeting, the University of Texas Investment Management Company (UTIMCO) announced that it will be establishing a new allocation to REITs within one of its investment funds. The recommendation for the new allocation was a product of a recent strategic asset allocation review.
The $10 billion investor approved introducing a 2.5% allocation, approximately $250 million, to public REITs within a newly established real return portfolio. The real return portfolio will have a 10% weighting within the overall intermediate fund portfolio, and will be split between 5% to TIPS, 2.5% to public REITs, and 2.5% to commodities.
The capital will come from a reduction to the total stable value portfolio to 40% from 44%, and global equity to 50% from 56%. The results of the strategic asset allocation review can be found on the UTIMCO website.