One of the largest real estate investment managers in the world, with $80.9 billion in assets under management, AEW Capital will handle investments for the pension fund for provincial government employees through a separately managed account.
The company will invest mostly in advanced markets such as the U.S., Europe, the U.K., and Japan, but the investment proportion of each country and sector can be adjusted at the discretion of POBA. The target return is 8% per annum.
POBA, which spent $260 million investing in global REITs this year, had sought a new global manager for $100 million of real estate investment since December.
The fund is expanding its network after making joint investments with global pension funds such as California State Teachers’ Retirement System (CalSTRS), Teacher Retirement System of Texas (TRS), and PFA Pension, a Danish pension provider.
POBA had total assets of 15.6 trillion won in 2020, up from 14.3 trillion won in 2019.
AEW Capital has been operating REITs in the U.S. since the mid-1990s and global REITs since 2005. It has REITs management teams based in London, Boston and Singapore. (Reporting by Hyewon Chang)