Oregon Pension May Cut Back on Real Estate Funds

The Oregon Investment Council is considering deep cuts in the state pension fund’s investments in private-equity-style real estate funds.

At a time when many institutional investors are shifting capital to higher-return, higher-risk categories of real estate investment, Oregon is seeking more traditional, income-generating property assets, to diversify the portfolio and make it a better inflation hedge.

Staff at the council, which manages the $69.5 billion Oregon Public Employees Retirement Fund, say that rebalancing its $8 billion real estate portfolio will make it easier to manage, according to a proposed real estate strategic plan distributed ahead of a meeting this month. ...