San Antonio (Texas) Fire & Police Pension Fund hired two managers to run $30 million each in commingled core real estate funds and four managers to run a total of $70 million in commingled value-added real estate funds, according to Warren J. Schott, executive director and CIO of the $1.3 billion fund. ING Clarion and RREEF will manage the core real estate funds. INVESCO and AEW each will run $25 million in value-added funds, and Legacy Partners and Principal Real Estate will run $10 million each.
The pension fund increased its real estate allocation to 8% from 3% and cut its large-cap equity allocation to 21% from 26%, based on an asset-liability study completed late last year, Mr. Schott said.
Fund officials terminated MetLife Tower Fund, which ran $39 million in a commingled open-end core real estate fund, Mr. Schott said, but he declined to say why.
Fund officials also committed $20 million to Venture Lending & Leasing IV and purchased $4.3 million in a secondary offering of Hancock Timber IV. Mr. Schott said those investments were made to increase the fund's private equity allocation to its 7% target.
Separately, the fund hired Consulting Services Group as its full-service consultant, replacing Smith Barney. Mr. Schott wouldn't say why Smith Barney was terminated.