Arkansas Teacher Retirement System intends to redeem almost half of its $283m (€244m) investment in the JP Morgan Strategic Property Fund and reinvest in DWS and Morgan Stanley open-ended US real estate funds.
The pension fund said in a meeting document that it has issued a $140m redemption from the JP Morgan fund and will invest $70m each into RREEF Core Plus Industrial Fund and the Morgan Stanley Prime Property Fund.
Back in July, JP Morgan announced it had cleared its redemption backlog.
Townsend, Arkansas Teacher Retirement’s real estate consultant, said over a trailing 12-month period, the RREEF Core Plus Industrial Fund has generated an 18.79% gross return which has outperformed the NCREIF Property Index Industrial by 468 basis points. The RREEF Industrial Fund, managed by DWS, has a $1.3bn net asset value.
Morgan Stanley’s core open-ended US fund owns real estate operating companies AMLI Residental and Safeguard Self Storage.
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