Ohio Police & Fire Pension Fund is shrinking its investment in the UBS Trumbull Property Fund partly due to investment performance.

The pension fund told IPE Real Estate that it had approved the withdrawal of $50m (€42.1m) from the open-ended, core US real estate fund. It has a total of $150m invested in the fund.

“The decision was based on The Townsend Group’s review of the open-ended funds, market conditions and the performance of the UBS Trumbull Fund,” Ohio Police & Fire said.

Ohio Police & Fire declined to comment on the returns it had achieved from the UBS fund, although another pension fund, Ohio Public Employees Retirement System, disclosed that its $278.5m investment in the fund generated a 6.7% net annualised return in the first quarter of 2017. The NCREIF ODCE index, of which UBS Trumbull is a constituent, generated an annualised return (gross of fees) of 8.34% in the same period.

Townsend – which is being acquired by Aon – has investment discretion over the real estate portfolio.

The capital withdrawn is likely to be diverted to in non-core real estate investments, in line with the investment strategy set by the pension fund for real estate in 2017.

Ohio Police & Fire has a total of 11 investments in its core open-ended real estate portfolio, valued at $942.2m in the first quarter of the year.

Its largest investment is a $206m holding in the JP Morgan Strategic Property Fund. The smallest is a $50m commitment to the John Hancock Real Estate Fund.