Ohio Police & Fire Pension Fund, Columbus, committed $25 million to Brookfield Brazil Timber Fund II, confirmed spokesman Eric Eramo.
The commitment is the $12 billion pension fund's fourth to timber; it created a 3% target allocation to the asset class in March 2010. The fund committed $100 million each to Forest Investment Associates and Hancock Timber Resource Group and $50 million to Brookfield Timber Fund V earlier this year.
Separately, the fund made additional commitments of $75 million to Prudential PRISA and $30 million to J.P. Morgan Strategic Property Fund as part of a general rebalancing of its real estate portfolio, increasing the total investments with the funds to $148 million and $150 million, respectively.
The fund redeemed $75 million from Morgan Stanley Prime Property Fund and $60 million from Invesco Core Real Estate Fund, leaving them with $54 million and $83 million, respectively. The additional $30 million redeemed from the Morgan Stanley and Invesco funds will go to fund an existing commitment to LaSalle U.S. Property Fund. The total allocation to the LaSalle fund is now $60 million.
The real estate portfolio rebalancing is due several factors, including “fee savings, performance expectations, our strategic portfolio profile, and our current overweight to the strategic portfolio,” Mr. Eramo wrote in an e-mail.