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Pension Funds

Tennessee Consolidated looks to manage liquid high-yield bonds and bank loans internally

Tennessee Consolidated Retirement System, Nashville, plans to create an internally managed portfolio focused primarily on liquid high-yield bonds and bank loans, said Shelli King, spokeswoman for state Treasurer David H. Lillard Jr., who oversees the pension fund, in an email.

The portfolio is being created to "smooth transitions in the asset allocation and is more of a transitional account at this point," Ms. King wrote. There is no target allocation size currently, although the internal portfolio will form part of the $44.4 billion pension fund's strategic lending portfolio, which has a 10% long-term target. A timeline for creating the portfolio was not available.

Additionally, in real estate, the pension fund will make an equity investment in the acquisition of Track 29 Apartments, a 198-unit apartment complex in Minneapolis.

The size of the investment will be released at closing, Ms. King said.