AP Fonden 1, Stockholm, selected SSgA and CB Richard Ellis Global Real Estate Securities as global listed real estate managers, confirmed Martin Kallstrom, senior portfolio manager for alternative investments at the 171.6 billion Swedish krona ($23.7 billion) fund.
Funding for the new allocations will come from rebalancing.
SSgA will run a passive portfolio, while CBRE's will be active. Sizes of the accounts have not been determined; when the fund began the search in December, it said the global listed real estate mandate, along with a North American REIT mandate, would total $200 million to $300 million. The North American REIT search has been shelved and will not be funded before 2011, Mr. Kallstrom said.