Orange County Employees Retirement System (OCERS), which placed a property fund managed by ASB Real Estate Investments on its watch list for underperformance, is planning to redeem its capital.
In June this year, IPE Real Assets reported that OCERS had its investment held in ASB Allegiance Real Estate Fund on a watch list and planned to rebalance its $1.1bn (€965m) core open-ended fund portfolio in the coming months.
The $15.87bn pension fund said in a board meeting document that it now intends to fully redeem its investment in the ASB Allegiance Real Estate Fund-A, valued at $166m as at the first half of the year. OCERS committed $110m to the fund in 2013.
The decisions were made under the advice of its consultant The Townsend Group. Townsend said the fund’s historical performance ranks in the fourth/bottom quartile and near-term performance continues to underperform.
ASB did not respond to a request for comment.
OCERS intends to reinvest capital by making two $75m commitments to funds focused on industrial and niche property types.
OCERS said it also expects to make additional commitments to core funds in the first half of 2019 in the range of $125m to $175m.