Investors - SEPTEMBER 29, 2016

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Alaska to shift $100m from REITs to open-end core fund

by Jody Barhanovich

The $29 billion Alaska Retirement Management Board is planning to invest $100 million in the UBS Trumbull Property Fund, a U.S. domestic core real estate fund managed by UBS Realty Investors, according to a board meeting document.

The commitment will be funded by reducing the retirement board’s REIT portfolio. ARMB is overweight in public real estate, with 81 percent of its portfolio invested in private real estate and 19 percent in public real estate, compared with a target allocation in real estate of 90 percent private and 10 percent public.

UBS’s core, open-end fund has a gross asset value of $22.5 billion and has made 224 investments in apartment, hotel, industrial, office and retail properties. ARMB board meeting documents stated UBS was a reasonable option for low-risk, low-leveraged core real estate, and the leverage component in the fund was relatively low at 15.6 percent.

ARMB is planning to make the move on the recommendation of

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