Bayerische Versorgungskammer, Munich, hired Principal Global Investors to run a €150 million ($208 million) allocation to real estate investment trusts, said a spokeswoman for the fund.
Germany's largest occupational pension fund, which has €59 billion in assets, reviews its asset allocation every two years, she said. REITs are a new asset class to BVK, she said in an e-mailed comment, and the allocation began in March.
The spokeswoman said at the last review BVK decided to put €150 million into a REIT, as it believes “that diversification is the key to a good portfolio.” The allocation is new, with other asset classes — especially fixed-income allocations — reduced. The spokeswoman said no managers were terminated, as the fund largely invests in fixed income directly. She declined to comment on the value of the reduction to its fixed-income allocation.