Orange County Employees Retirement System (OCERS) is redeeming its $150.5m (€135.4m) investment in JP Morgan Asset Management’s Strategic Property Fund to reinvest in Principal Real Estate Investors’ flagship core fund.

In August last year, IPE Real Assets reported that OCERS is putting the Strategic Property Fund on its watch list for underperformance.

In a meeting document, consultant The Townsend Group said the Strategic Property Fund has underperformed over several time periods, putting the fund in the fourth bottom quartile for the open-ended fund universe.

Townsend attributed the underperformance partly to overweight positions to the office and retail sectors and being underweight industrial.

JP Morgan Asset Management declined a request for comment.

Once the capital is received, OCERS plans to re-invest the capital into The Principal US Property Account.