State of Michigan Retirement System has been a net seller of real estate and infrastructure, disposing of more than $1.8bn (€1.6bn) of assets over the past 12 months.

The $73bn pension fund made $662m of new investments during the same period, according to a board meeting report.

The report said the State of Michigan Investment Board was looking to realise gains by selling into the market at historically low cap rates.

Last year, IPE Real Assets reported that the pension fund had been net seller of real estate during its previous fiscal year, disposing of more than $1bn assets and funding less than $1bn of new investments.

For new investments, the pension fund is focusing on off-market deals and is looking to reduce risk in the portfolio through “early income-generating investments including credit strategies that are higher in the capital stack with a shorter projected hold period”.

During the second quarter of 2019, it approved a $75m commitment to Asana Partners Fund II, an $800m fund that targets value-add opportunities in the US retail property.

It also made a $25m commitment to the Core Property Index Fund, a fund of funds that will invest in 21 of the top 25 funds that constitute the $248bn NFI-ODCE index.