Canadian pension fund OMERS reported a 12.4% net return on its real estate assets in 2016, falling short of the 15.3% returned in 2015.
The Ontario fund is the backer and owner of Oxford Properties.
Although real estate outperformed its total net return of 10.3%, OMERS cut its exposure to the industry from 16.9% to 14.6% as it expanded its infrastructure and public investments.
With net assets under management rising by 10.5% to C$85.2bn (£52bn), real estate fell from about C$13bn to C$12.4bn.
OMERS invests in real estate in Canada, Europe and the US. In Europe, the fund focuses on developments and income-producing office and retail properties in London and Paris.
Michael Latimer, president and chief executive of OMERS, said: “Our investment returns in 2016 reflect the value of our diversified portfolio of assets.”
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