Texas Permanent commits to real estate fund, rehires BNY Mellon as custodian

Texas Permanent School Fund, Austin, committed $75 million to Exeter Industrial Value Fund IV, a real estate fund managed by Exeter Property Group that will invest in U.S. industrial distribution properties. Exeter Property Group is the fund's manager.

The Texas State Board of Education, Austin, approved the commitment during a meeting Friday. The board oversees investment of the $29.8 billion endowment. The Committee on School Finance/Permanent School Fund recommended the commitment on Thursday, a webcast showed.

Separately, the Permanent School Fund rehired BNY Mellon for global custody and securities lending activities.

The board of education approved the rehiring after the finance committee's recommendation.

The bank was first appointed in 2004 and its current contract expires Aug. 31, 2017. The new contract begins Sept. 1, 2017, and extends to Aug. 31, 2021, with an option to renew.

Northern Trust was the other finalist interviewed by the finance committee after a search that began in the first half of 2016.