School Employees Retirement System of Ohio has issued $265m (€242.7m) worth of redemptions to help rebalance its real estate portfolio.
The $18bn pension fund’s issued redemptions include requesting $100m from PRISA II, $50m from JP Morgan Strategic Property Fund, and $25m each from PRISA and the RREEF America II funds.
Ohio SERS also issued a $65m redemption from a public real estate investment trust portfolio managed by BlackRock.
The redemptions were issued to help lower the pension fund’s real estate exposure in order to take it closer to its 20% allocation target.
So far, only $23m of the capital from the redemptions has been returned to the pension fund.
Ohio SERS said it intends to issue further real estate redemptions in the fiscal 2024 year begining 1 July to help with the rebalancing.
Part of the pension fund’s investment plan for fiscal 2024 is to manage the existing real estate and infrastructure allocation to improve portfolio structure and achieve favorable returns by incrementally reallocating capital from real estate to infrastructure until the latter reaches the target of 7%.
To help reach the infrastructure portfolio’s target allocation, Ohio SERS intends to consider new investment strategies involving energy transition, digital and listed infrastructure funds.
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