Montana Board of Investments is focusing on non-core real estate assets over the next 12 months.

The $18.5bn (€16.2bn) pension fund has allocated $120m for real estate investment for its 2018-19 fiscal year and will focus exclusively on non-core assets, according to a board meeting report.

These could include real estate debt strategies.

The pension fund allocated $180m for the previous 12 months, but ended up investing $310m in the form of eight fund commitments.

These included a recent $20m commitment to the Fidelity Real Estate High Income, a property debt fund, and a $30m commitment to Angelo Gordon Realty Fund X, a value-add real estate vehicle.

Montana Board of Investments tends to invest in US markets through commingled funds and the pension fund prefers general partners to be vertically-integrated real estate operators.