Denver Employees Retirement Plan is shifting its overall real estate portfolio to a 60% core/40% non-core split, from 70% core/30% non-core, said Steven Hutt, executive director. Real estate makes up about 10% of the $1.7 billion plan's assets.
The system is searching for a non-core real estate manager to run $10 million, Mr. Hutt said. Townsend Group, specialty real estate consultant, will be coordinating the process, Mr. Hutt said. There will be no RFP; Townsend will screen candidates and make recommendations to the plan.
Additionally, the board decided to make an initial $10 million investment in the JP Morgan Alternative Property Fund, a new non-core fund, Mr. Hutt said. The funding source has not been determined and will depend on when commitment gets drawn down, he said.
The system's board will also initiate a securities lending program with its global custodian, JPMorgan Chase, with a target start date of Oct. 1, Mr. Hutt said. "We anticipate average net annual revenue from the lending program of approximately $500,000," he said.