Cook County Annuity & Benefit Fund’s investment committee on Tuesday took no action on a recommendation by investment consultant Callan Associates to hire Adelante Capital Management to run up to $100 million in its total return U.S. REIT strategy.
Adelante, an emerging manager, was the lone recommendation of Callan following an RFP that was issued by the $8.9 billion pension fund in February for emerging managers or funds-of-funds managers. The Chicago-based pension fund’s investment staff will study the recommendation and report back to the committee at a later date.
Funding for the active U.S. REIT hiring would come from a Russell Investments transitional U.S. REIT index fund. No managers will be terminated.
Also at Tuesday’s meeting, Callan recommended that the committee consider moving some of the pension fund’s REIT allocation — currently 20% of its overall 8% real estate allocation — to global REITs. All of its REIT investments are in U.S funds. No decision was made on the recommendation.