Oregon Public Employees Retirement Fund (Oregon PERF) has terminated a real estate securitised debt separate account managed by Talmage and is reducing its exposure to real estate investment trusts (REITs).
According to a board meeting report, Oregon PERF has ended the $430m separate account after 10 years. Tamalge has been investing in commercial mortgage-backed securities and collaterlised debt obligations on behalf of the pension fund.
Anthony Breault, senior investment officer for real estate at the Oregon Investment Council, told ΒιΆΉΣ³» Real Assets: βThe current real estate investment strategy for the pension fund no longer fits in with the Talmage account.
βWe are only investing in equity real estate. Our real estate investment policy was changed in 2016 for only equity investing and not debt.β
Oregon PERF has also redeemed $70m and $854m from REIT portfolios managed by Cohen & Steers and LaSalle Investment Management, respectively.
Breault said the pension fund decided to lower its allocation to REITs in 2016, from 20% to 5%.
βThese moves were made to get us closer to the new allocation level,β he said.
Oregon PERFβs plans to reinvest the capital in core-plus or value-add real estate, via funds or separate accounts.
In December last year, ΒιΆΉΣ³» Real Assets reported that Oregon is looking to invest in core-plus funds in 2018 as it concludes a plan to invest $800m (β¬644m) in core funds.
