Ohio Police & Fire Pension Fund is shrinking its investment in the UBS Trumbull Property Fund partly due to investment performance.
The pension fund told ΒιΆΉΣ³» Real Estate that it had approved the withdrawal of $50m (β¬42.1m) from the open-ended, core US real estate fund. It has a total of $150m invested in the fund.
βThe decision was based on The Townsend Groupβs review of the open-ended funds, market conditions and the performance of the UBS Trumbull Fund,β Ohio Police & Fire said.
Ohio Police & Fire declined to comment on the returns it had achieved from the UBS fund, although another pension fund, Ohio Public Employees Retirement System, disclosed that its $278.5m investment in the fund generated a 6.7% net annualised return in the first quarter of 2017. The NCREIF ODCE index, of which UBS Trumbull is a constituent, generated an annualised return (gross of fees) of 8.34% in the same period.
Townsend β which is β has investment discretion over the real estate portfolio.
The capital withdrawn is likely to be diverted to in non-core real estate investments, in line with .
Ohio Police & Fire has a total of 11 investments in its core open-ended real estate portfolio, valued at $942.2m in the first quarter of the year.
Its largest investment is a $206m holding in the JP Morgan Strategic Property Fund. The smallest is a $50m commitment to the John Hancock Real Estate Fund.
