Investors - OCTOBER 9, 2014

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Iowa switches REIT managers

by Reg Clodfelter

The Iowa Public Employees’ Retirement System has moved on from RREEF Securities as a domestic REIT manager, terminating its separate account relationship with the firm.

RREEF Securities was placed on IPERS’ watch list for one year in August 2013 due to personnel turnover. The firm experienced more turnover in March 2014, prompting IPERS to issue an RFP to evaluate alternative active and passive REITs products. RREEF, now known as Deutsche Asset & Wealth Management, managed approximately $370 million for the $28 billion retirement system. 

State Street Global Advisors has been recommended to replace RREEF and manage a passive REITs strategy of approximately $300 million. State Street was recommended mainly due to their low-cost proposal, notes Karl Koch, IPERS’ chief investment officer. IPERS expects to complete contract negotiation with State Street as well as the transition of assets from RREEF Securities by the end of 2014.

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