Ohio Police & Fire Pension Fund, Columbus, made partial redemptions totaling up to $100 million from three open-end real estate fund managers, spokesman David Graham said in an email.
The $15.5 billion pension fund redeemed $40 million from J.P. Morgan Strategic Property Fund, managed by J.P. Morgan Asset Management, leaving it with $176 million; up to $35 million from USAA Eagle Real Estate Fund, managed by USAA Real Estate, leaving it with $25 million; and $25 million from Heitman HART, leaving it with $118 million.
How the assets will be reallocated has yet to be determined. The partial redemptions were approved to provide the pension fund's real estate portfolio with a more "attractive projected risk-return profile" by reducing exposure to redevelopment and retail sectors, and increasing exposure to industrials.
The pension fund also activated the dividend reinvestment plan for its $100 million investment in Prime Property Fund managed by Morgan Stanley Real Estate Investing and its $86 million investment in LaSalle Property Fund managed by LaSalle Investment Management. The activation gives the staff the authority to participate in dividend reinvestment plans offered by open-end funds.
The actual allocation to real estate is 11.3%; the target is 12%.
Real estate consultant Townsend Group assisted.