West Palm Beach (Fla.) Police Pension Fund will make a full redemption of its $21 million investment in the J.P. Morgan Special Situations Property Fund.
The $453 million pension fund's board voted to make the redemption from the open-end real estate fund managed by J.P. Morgan Asset Management at its July 14 meeting, recently released meeting minutes showed.
Investment consultant AndCo Consulting recommended the redemption, citing what it said was an unfavorable debt profile, a loan default on a "sizable office asset," and "unwillingness to share specific information related to the rationale on specific investments and the business strategy," along with recent underperformance, according to the minutes.
Kristen Chambers, spokeswoman for J.P. Morgan Asset Management, declined to comment.
As of June 30, the pension fund's actual allocation to real estate was 13.5%.
Brendon Vavrica, senior consultant at AndCo Consulting, could not be immediately reached for further information.
