Teachers’ Retirement System of Oklahoma intends to fully redeem its $118.4m (€100.2m) investment in an American Realty Advisors open-ended US fund, following a period of underperformance.
The pension fund disclosed in a board meeting document that the American Strategic Value Realty Fund had been outperformed by the NFI-ODCE benchmark on a time-weighted basis for every time period over the previous five years.
The return that the pension fund achieved since the beginning of its investment in the fund was a 3.7% internal rate of return.
The fund’s portfolio consisted mainly of residential and retail assets. Its investment approach prioritised assets in need of repositioning or operational turnaround to drive performance toward stabilisation.
The pension fund said American Realty Advisors has maintained consistent redemption payouts, with no exit queue reported for the fund through September 2025.
Oklahoma Teachers intends to reinvest the capital it redeems into other open-ended real estate opportunities deemed more attractive.
American Realty Advisors did not respond to a request for comment.
Oklahoma Teachers has set a real estate pacing plan for calendar year 2026 with $200m for core and $300m for non-core.
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