Massachusetts Pension Reserves Investment Management board today terminated Wellington Management, which ran a $163 million REIT, as part of a broader restructuring of the $37.8 billion systems REIT investments.
The Boston-based board approved recommendations by real estate investment consultant Callan Associates to cut its REIT holdings to 20% of PRIMs overall real estate investments from 27% and boost the international portion of that REIT allocation to 50% from 30%.
To do that, the board voted to terminate Wellington, noting that the boards other domestic REIT managers, Invesco and Urdang, have performed more consistently over market cycles.
The $163 million was moved to European Investors, the boards international REIT manager, which will now run $258 million.
Wellington spokeswoman Lisa Finkel declined to comment.
Also today, MassPRIMs new general consultant, Ennis Knupp, recommended no major changes to PRIMs equity-fixed income mix after presenting the results of the firms asset-liability review. However in line with recommendations of the new consultant, CIO Stan Mavromates said changes in subasset class allocations and MassPRIMs manager lineup would likely be recommended at the next board meeting Aug. 5.