Mass. PRIM Removes REIT Manager
June 3, 2009
The $37.8 billion Massachusetts Pension Reserves Investment Management Board (PRIM) has stripped Wellington Management from the $163 million REIT portfolio it manages at the fund, according to a Boston Globe report.
Wellington was terminated due to poor performance and a shift in PRIM’s REIT allocation, the report said.
During 2008, the Wellington portfolio lost 46%, compared to its benchmark, which lost 37%. The board is also cutting its investments in the space from 3% to 2%. Instead, more of that allocation will be placed in global investments, putting 50% of the REIT portfolio into global securities, compared to the 30% it previously invested globally in the asset class. The Wellington fund only invested in the U.S.
Reportedly, PRIM has hired European Investors to replace Wellington.
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