Nashville and Davidson County fund to search for global equity managers

Metropolitan Government of Nashville (Tenn.) and Davidson County Employee Benefit Trust Fund will likely search for global equity managers starting in May, confirmed Fadi BouSamra, chief investment officer.

The $2 billion pension fund increased its targets to alternative fixed income to 15% from 10% and real assets to 12.5% from 10%. Traditional fixed income was reduced to 15% from 20%, and domestic equities was reduced to 14.5% from 17%.

Target allocations that remain unchanged are 13% international equity and 10% each global equity, long/short equity and private equity.

Mr. BouSamra wrote in an e-mail that no managers will be terminated.

Despite the 10% allocation to global equity, the pension fund does not have any managers in that asset class yet. Mr. BouSamra said a search might be approved at the pension fund’s May board of trustees meeting.

Separately, the pension fund will commit $15 million to $30 million to True North Real Estate Fund III run by True North Management Group. The plan previously committed $30 million to Fund II.

The pension fund also committed between $15 million to $20 million each to Cyrus Opportunities Fund II and ING Mortgage Investment Fund, run by Cyrus Capital Partners and ING Alternative Asset Management, respectively.

Also, the pension fund made a follow-on commitment of $10 million to co-investment fund Greenspring Opportunities II. The pension fund had previously committed $10 million to the fund.

Investment consultant Summit Strategies Group assisted.

The pension fund also reported a return of 13.9% in the year ended Dec. 31.

— Contact Rob Kozlowski at rkozlowski@pionline.com | @Kozlowski_PI