Adams County assigns $10 million to Principal real estate fund

Adams County Retirement Plan, Brighton, Colo., committed $10 million to Principal Real Estate Debt Fund, managed by Principal Real Estate Investors, confirmed Pamela Mathisen, executive director.

Funding came from reducing the pension fund's allocation to hedge funds of funds to 10% from 15%. GAM and Grosvenor Capital Management now run 5% each of plan assets, or about $10.5 million, down from 7.5%.

The $210 million plan has also about $20 million invested in a Principal core real estate fund.

The pension fund also reduced its international equity allocation to 15% from 20% and increased domestic equity to 32.5% from 27.5%. The changes were made by rebalancing among existing managers.

Separately, the plan hired Babson Capital Management to run about $1.2 million in senior secured loans. Funding came from a $24 million bond strategy managed by Denver Investments.

Also, the plan terminated a $3.5 million active domestic smidcap equity strategy managed by Janus Capital Group because of personnel changes. The pension fund hired Janus and Pyramis Global Advisors to run $8.5 million in smidcap equity earlier this year; Pyramis now will manage the entire $8.5 million.

Investment consultant Watershed Investment Consultants assisted with the changes.