Ohio Police & Fire Pension Fund is planning to redeem $100m (€90.4m) from open-ended real estate funds to help reduce its exposure to the retail and redevelopment property sectors.
The $14.7bn pension fund said it will redeem $65m and $35m from core and non-core managers respectively, to provide a revised portfolio with a more attractive risk-adjusted return profile.
Ohio Police & Fire said the approved changes will also increase pension fund’s $1.79bn real estate portfolio exposure to the industrial sector.
Ohio Police & Fire has a $950m core open-ended portfolio managed by seven managers.
The holdings are in the Heitman America Real Estate Fund, Jamestown Premiere Property Fund, JP Morgan Strategic Property Fund, LaSalle Property Fund, Morgan Stanley Prime Property Fund, PRISA and the UBS Trumbull Property Fund.
The pension fund’s $308.6m non-core open-ended real estate portfolio’s funds are held in the Brookfield Premiere Real Estate Fund, Cortland Growth & Income Fund, Hancock US Real Estate Fund, Lion Industrial Trust and the USAA Eagle Real Estate Fund.
Ohio Police & Fire said it has also approved an $80m commitment into the Brookfield Infrastructure Fund IV, a global infrastructure fund expected to raise $17bn, including a 25% co-investment from manager Brookfield.
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