The San Diego City Employees’ Retirement System has given Brookfield Global Real Estate Securities a final notice of termination ending their relationship.
The US pension fund, according to a board-meeting document, gave notice to the manager last month.
Brookfield Asset Management declined to comment.
The pension fund made the decision as it looks to exit REITs.
The decision was first reported in May.
Its consultant, Aon Hewitt, said it believed the pension fund’s real estate portfolio offered a broad range of strategies and provided the benefits of REITs but with less volatility.
In a previous board-meeting document, the scheme said real estate securities suffered from higher volatility, exacerbated of late by factors beyond underlying real estate fundamentals.
The most recent updated value of the REIT portfolio managed by Brookfield was $85.4m (€76m), according to a board-meeting document.
San Diego City will now fail to meet its target allocation for real estate after exiting from REITs.
The amount currently invested for real estate would be 10.3%.
The pension fund has a target allocation of 11%.