Connecticut earmarks $100 million for real estate fund

Connecticut Retirement Plans & Trust Funds agreed to commit up to $100 million to the USAA Eagle Rock Real Estate Fund, confirmed Denise Nappier, the state treasurer and principal fiduciary for the $26.6 billion state pension system.

The real estate fund, managed by USAA Real Estate Co., “will focus primarily on commercial properties, including multifamily, industrial, office and retail properties, located in the major metropolitan areas of the U.S.,” Ms. Nappier wrote in an e-mail response to questions. The hiring decision is pending successful contract negotiations.

Ms. Nappier announced the commitment Wednesday at a meeting of the Investment Advisory Council, which advises the treasurer on investment policies. The Connecticut Retirement Plans and Trust Funds consists of six state pension funds and nine state trust funds.

Ms. Nappier also told the council that the Connecticut Retirement Plans and Trust Funds will issue an RFP to hire one or more currency overlay managers for its developed markets international stock fund, which accounts for $5.7 billion of pension system assets.

The currency overlay managers will “be responsible for the oversight and administration of the investments of a separately managed account (and) for the management of foreign currency exposure,” she wrote in a July 3 memo to the council.

The pension system has one currency overlay manager, Pareto Investment Management, whose contract expires Feb. 1, 2014, Ms. Nappier wrote in an e-mail response to questions. Pareto is welcome to re-bid for the new contract that will run five years, she added.

According to a document prepared by the treasurer's office and presented at the council meeting, a formal RFP will be issued July 12 with an application deadline of Aug. 2. Applicants will be interviewed in November and candidates will be selected in mid-December. The contract takes effect Feb. 1, 2014.