Chicago Public School Teachers' Pension & Retirement Fund restructured its REIT managers and allocation, boosting Adelante Capital Management's allocation and terminating Morgan Stanley, according to a report from the pension fund's board.
The moves are part of a reduction in the allocation to real estate investment trusts to a 2% target from a 2.7% actual share of the $9.9 billion pension fund.
Under the changes, the pension fund will increase its commitment to Adelante Capital by up to $25 million. Adelante currently manages $66 million. The fund also broadened Adelante's assignment to global REITs from domestic REITs.
The pension fund terminated Morgan Stanley, which ran $106 million. The fund plans to use $75 million of the proceeds for benefit payments and future allocations, temporarily holding some money in cash. The report doesn't break out the split.
The report did not mention any change to the assignment of CenterSquare Investment Management, formerly Urdang Capital Management. CenterSquare, the pension fund's other REIT manager, runs $92.8 million.
Townsend Group, the pension fund's real estate investment consultant, recommended the rebalancing and other changes.
Carmen Heredia-Lopez, the pension fund's chief investment officer, couldn't be reached for further details.