Baton Rouge (La.) and East Baton Rouge Parish Retirement System hired ING Clarion to run $40 million in the firm's Clarion Lion Properties commingled real estate fund, said Jeff Yates, retirement administrator. The fund is "broadly diversified" in U.S. office, retail, residential and industrial properties, he said. Officials at the $830 million system, which has not had a real estate allocation in several years, wanted to get back into the asset class for diversification, Mr. Yates said. Funding will come from reducing the fund's fixed-income portfolio. RREEF and Principal Real Estate were the other finalists.
The system's asset allocation is 67% equity and 33% fixed income. Summit Strategies assisted.
