T
he Teachers' Retirement System of Oklahoma has adopted a new asset allocation strategy, marking its first foray into infrastructure with a 3% allocation. This move is part of an effort to enhance diversification across various asset classes while maintaining the portfolio's risk profile.

    According to AON, the pension fund's consultant, adding infrastructure will help reduce risk and boost returns, while reducing real estate from 10% to 8% will maintain portfolio diversification. The new allocation will take effect on July 1.

    The $24bn pension fund plans to make its first infrastructure investment in August by committing to a core infrastructure fund manager. For 2025, Oklahoma Teachers has set a $200m real estate pacing plan, with $100m allocated for core and $100m for non-core investments. This follows a cautious approach taken in 2024, when the pension fund opted not to make any commitments due to market conditions and investor sentiment.