Los Angeles County Employees Retirement Association (LACERA) is planning to reduce the size of its real estate portfolio.
According to a board meeting report, the pension fund plans to sell assets during the next fiscal year that would result in a $1bn (€886m) net reduction.
A large part of the planned activity would involve the sale of about $500m worth of apartments.
The rebalancing could also reduce its weighting to separate accounts in favour of commingled funds.
Last September, 85% of its $6.4bn real estate portfolio was managed in the form of separate accounts. This could be shifted so that separate accounts and commingled funds represent an equal share.
LACERA will still make new investments and it plans to invest between $250m and $500m through five existing separate account managers, Clarion Partners, Heitman, Invesco Real Estate, DWS and Stockbridge.
It will also consider committing to one to three international real estate funds, and could make additional commitments to US industrial funds.
LACERA said it would consider investing in open-ended core real estate funds in the US once the re-balancing had been completed.