New York State Teachers Retirement System (NYSTRS) has changed its roster of managers for global real estate investment trusts (REITs).

The pension fund has hired AEW Capital Management and Heitman, while dropping LaSalle Investment Management and RREEF America, part of Deutsche Asset Management.

AEW and Heitman have each been awarded $210m (€194m), as have the two other incumbent managers, Brookfield Investment Management and Dimensional Fund Advisors.

The new mandates will be funded mostly by withdrawing capital from portfolios managed by LaSalle and RREEF, which in aggregate were worth $791m.

LaSalle and RREEF both managed global ex-US strategies, worth $125m and $282m, respectively. RREEF also managed a US public REIT portfolio valued at $384m.

NYSTRS made the moves as part of a plan to rebalance its REIT strategy so that 50% was allocated to the US and 50% overseas.

The reallocation plan was recommended by the pension fund’s real estate consultant Callan Associates and approved by the NYSTRS board.

All four managers employed will have investment discretion within a strategic framework.

They will be benchmarked the FTSE EPRA/NAREIT Developed Index.