Nashville and Davidson County fund to search for global equity managers
By Rob Kozlowski | February 26, 2013 4:11 pm
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.