Columbus, OH – The Ohio Bureau of Workers Compensation (BWC) Board of Directors recently selected active managers to oversee investments in the commercial real estate market. The eight firms will manage a portion of the State Insurance Fund (SIF) investment portfolio in professionally managed private funds that own commercial real estate concentrated in the United States.
“These managers will assist BWC in joining other institutional investors in large funds that own portfolios of high quality commercial real estate,” said BWC Administrator/CEO Steve Buehrer. “Our investment staff and consultants have once again taken great care in developing and employing an investment strategy that will support a strong workersâ€™ compensation system.”
The selected managers including allocated assets to be funded:
- Prime Property Fund (Morgan Stanley)
- AEW Core Property Trust
- ASB Allegiance Real Estate Fund
- Heitman American Real Estate Trust
- Invesco Core Real Estate – USA
- Cornerstone Patriot Fund
- IAA – CREF Asset Management Core Property Fund
- UBS Trumbull Property Fund
The board approved a six percent allocation toward real estate for the SIF portfolio last year.
The firms selected will manage 4.5 percent of the portfolio toward open-end core commingled pooled funds. The initial funding request for the 4.5 percent allocation will be approximately $950 million. BWC investment consultant, R.V. Kuhns, will assist in selecting qualified candidates to manage an additional 1.5 percent toward value-added pooled funds.
“This move into the real estate market will diversify our portfolio, and mitigate some of the risk associated with BWC’s heavy investment in the bond market, which is sensitive to changing interest rates,” added BWC Chief Investment Officer Bruce Dunn.
The total six percent allocation of total SIF invested assets will require a long-term implementation over a period of several years.
Source: Ohio BWC