Ohio Public Employees Retirement System said it will redeem $150m (€127m) from two core open-ended real estate funds to help balance its real estate portfolio.
It is withdrawing $100m from the JP Morgan Strategic Property Fund and $50m from the UBS Trumbull Property Fund, according to pension fund board meeting document.
Ohio PERS will still remain an investor in both funds. By the middle of this year, the pension fund had $542m invested in the Strategic Property Fund and $229m in the UBS Trumbull fund.
JP Morgan declined to comment and UBS Realty Investors did not respond when contacted.
The Strategic Property Fund was listed by the pension fund as one of its top performing real estate managers. This fund produced a 1.91% net total return in the second quarter of 2017.
The pension fund is invested in three other open-ended funds, two of which are core funds. It has a $638m investment in BlackRock US Core Property Fund, a $236m investment PRISA, and a $236m investment in PRISA II.
Ohio PERS said it reduced its exposure to core open-ended funds to keep it in balance with its two other real estate investment channels: closed-ended funds and separate accounts.
Ohio PERS has set a goal for 2017 to find prudent investment opportunities that will bring the overall real estate portfolio closer to the 10% allocation target.
It is planning to invest $500m in closed-end funds this year.
