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Pension Funds

Illinois Municipal pulls commitments to 3 funds after reviewing contracts

Illinois Municipal Retirement Fund, Oak Brook, withdrew previous commitments made to two real estate funds and one infrastructure fund after a review of their contracts, said Dhvani Shah, chief investment officer of the $41.3 billion pension fund.

IMRF withdrew a $150 million commitment to Heitman America Real Estate Trust, which had been approved by the pension fund board Nov. 17, because of unfavorable legal terms of the investment, Ms. Shah said.

A $100 million commitment to the Oaktree Transportation and Energy Infrastructure Fund, managed by Oaktree Capital Management (OAK), was terminated because of "significant changes … in terms of senior level turnover and to the strategy in terms of investing a fund solely focused on transportation investments," Ms. Shah said. The Oaktree commitment had been approved May 19, 2017.

Also withdrawn was a €50 million ($57.2 million) commitment to the CBRE Pan-European Core Fund, a real estate fund managed by CBRE Global Investors, that had been approved Aug. 26, 2016. The general partner could "amend the governing documents without IMRF's consent," Ms. Shah said.

The commitments will be used for other approved but as yet unfunded alternatives investments, she said.

The pension fund has a 7% target allocation to alternative investments; its actual allocation as of June 30 was 3.9%.