Maryland State Retirement and Pension System (SRPS) has approved a $100m (€96.2m) commitment to MetLife Core Property Fund, a core open-ended real estate fund.
Maryland SRPS said in a meeting document that the investment is being made to help rebalance the pension fund’s core portfolio in a bid to improve diversification and reduce fees.
According to a recent SEC filing, the MetLife fund currently has a $5.2bn net asset value.
The pension fund’s investments in core open-ended funds include an $849.7m investment held in CBRE US Core Partners fund, $834.6m in Heitman America Real Estate Trust, a $1.1bn investment in the JP Morgan Strategic Property Fund, $634.4m in the LaSalle Property Fund, $1.2bn in Prime Property Fund and a $454.3m investment held in the UBS Trumbull Property Fund.
Maryland SRPS also disclosed in the meeting document that said it has started a real estate co-investment programme. The pension has completed two co-investment transactions worth $100m in total for investments in residential and medical office assets.
Maryland SRPS said co-investing offers the pension fund an opportunity to enhance performance, reduce blind pool risk and lower manager fees.
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