UNITED STATES - Some pension fund capital in the United States is flowing against the tide and being reallocated to a core investment strategy.

Over the past 12 to 18 months, there had been limited interest by major pension funds in the US in a core strategy as much of their capital was being placed in value-added or high-return strategies.

But this is now changing as some pension funds, including Ohio Public Employees Retirement System and Pennsylvania Public School Employees Retirement System, believe there is a place for a portion of capital to be placed in established core commingled funds which have been shown to produce solid cash flow returns.

Ohio PERS recently made two major commitments to core commingled funds a $100m (€70.6m) allocation to the Granite Property Fund alongside was a $200m allocation to the RESA Fund.

Formerly know as The Tower Fund, the $6bn Granite Property Fund has been in existence since the mid-80s, owning established and leased office, industrial, retail and apartments, and is managed by BlackRock Realty.

UBS Realty Investors manages the $11.7bn RESA commingled fund which has been in operation since 1978 and invests in a mixture of office, industrial, retail and apartments.

Pennsylvania Public School has made a commitment of up to $100m into the Cornerstone Patriot Fund, which has built a gross market value of $893m since its inception in 2004 and invests in office, apartments, retail, industrial and hotel.