Seattle City Employees’ Retirement System committed $10 million to Hearthstone Multi-state III Residential Development Fund, which targets single-family housing in Sun Belt states. Funding will come from a $4.5 million investment in the Frank Russell Real Estate Equity Fund, which is being terminated because of long-term performance, said Mel Robertson, assistant executive director at the $1.2 billion system. Additional funding will come from reducing various real estate pools managed by J.P. Morgan Fleming, leaving a total of $23 million.
Frank Russell spokesman Steve Claiborne said the fund had outperformed its benchmark by 169 basis points last year, returning 7.6%.
