Olivette pension board lowers real estate target to 5% and directs reallocations, manager search

Olivette City pension board members voted unanimously to lower the plan's core real estate target to 5% and to reallocate the difference, directing their investment adviser to implement redemptions and bring options back to the board.

The board approved a motion to reduce the core real estate allocation to 5% with bands at 5% on either side, and then, after further discussion, approved an amended motion directing Marquette to reallocate the 5% removed from real estate so that 2.5 percentage points would be added to private equity and 2.5 percentage points to U.S. large-cap equities. The board also authorized Marquette to pursue additional redemptions from Principal US Property to reach the 5% level and commissioned a manager search to replace the plan's current high-yield holding.

Why it matters: the board's changes shift the plan's risk profile modestly toward less real estate exposure and slightly more private equity and U.S. large-cap exposure. Board members said the moves aim to preserve the plan's liquidity cushion while aligning long-term return expectations with the investment policy.

Board discussion and rationale

Tom (investment consultant, Marquette) and Jonathan (portfolio presenter, Marquette) reviewed the fund's fourth-quarter performance and current weightings, telling the board the plan ended 2024 at about $23 million with a 2024…