Kalamazoo (Mich.) Employees' Retirement System hired RREEF and Dimensional Fund Advisors to manage a total of up to $12.5 million each in commingled real estate equity, said John Nelson, chairman. The assets will be divided evenly between the two managers. The $440 million plan's investment committee had originally committed the assets to the Lend Lease Prime Property Fund, but Lend Lease's U.S. real estate equity business was acquired by Morgan Stanley. Morgan Stanley was terminated because the plan has a policy of not using investment brokers as money managers, Mr. Nelson said. No investment consultant was used.
The plan's target asset allocation is 70% equity, 25% bonds and 5% real estate.