The State Universities' Retirement System of Illinois, Champaign, has decided to get out of real estate. Distributions from real estate partnerships run by RREEF and Equitable will be reinvested in a Wilshire 5000 index fund run by Barclays.
``We still have about 4% of the fund in real estate - down significantly. We were 10% at one point and 5% as of June,'' said John Krimmel, associate investment officer of the $7.25 billion fund. ``As managers sell properties and distribute the proceeds back we will not reinvest our proceeds.''
A separate account portfolio with Aetna was liquidated, the bulk in September. Some $50 million of the proceeds were reinvested in the index fund. In addition, RREEF continues to liquidate properties from expiring funds and the fund is waiting to exit an open-end commingled fund run by Equitable.