State of Michigan Retirement System has been a net seller of real estate and infrastructure, disposing of more than $1.8bn (β¬1.6bn) of assets over the past 12 months.
The $73bn pension fund made $662m of new investments during the same period, according to a board meeting report.
The report said the State of Michigan Investment Board was looking to realise gains by selling into the market at historically low cap rates.
Last year, ΒιΆΉΣ³» Real Assets reported that the pension fund had been net seller of real estate during its previous fiscal year, disposing of more than $1bn assets and funding less than $1bn of new investments.
For new investments, the pension fund is focusing on off-market deals and is looking to reduce risk in the portfolio through βearly income-generating investments including credit strategies that are higher in the capital stack with a shorter projected hold periodβ.
During the second quarter of 2019, it approved a $75m commitment to Asana Partners Fund II, an $800m fund that targets value-add opportunities in the US retail property.
It also made a $25m commitment to the Core Property Index Fund, a fund of funds that will invest in 21 of the top 25 funds that constitute the $248bn NFI-ODCE index.
