Illinois Municipal commits to 3 real estate funds

Illinois Municipal Retirement Fund, Oak Brook, committed up to $175 million to three core real estate funds, subject to due diligence, according to John Krupa, spokesman.

Up to $125 million was committed to AEW Capital Management Core Property Trust (U.S.), and up to $25 million each was committed to Cornerstone Patriot Fund, managed by Cornerstone Real Estate Advisers, and Invesco (IVZ) Core Real Estate (USA).

The AEW commitment is the pension fund's first with that real estate investment manager; Illinois Municipal has previous investments with Cornerstone and Invesco.

The commitments were approved by the $30.1 billion pension fund's board at a June 28 meeting, according to an e-mail from Mr. Krupa.

Illinois Municipal has a 6% target asset allocation to real estate; its actual allocation to the asset class as of May 31 was 2.9%.