Knoxville (Tenn.) City Employees' Pension Fund hired Principal Financial Group to manage $15 million in commingled real estate, subject to contract negotiations, said Mike Cherry, executive director. Funding will come from reducing some of the $450 million pension plan's fixed-income investments, but the board has not finalized details, he said. Principal had been a finalist when the plan hired RREEF to run a $25 million core diversified real estate portfolio in 2003.
The pension fund's asset allocation is 73% equity, 21% fixed income and 6% real estate.
Summit Strategies assisted.
