Denver Employees Retirement Plan will have newly hired general investment consultant Summit Strategies Group handle real estate advising as well, in an effort by the $2 billion plan to save on fees, confirmed Steven Hutt, executive director.
Townsend Group, the plans specialist real estate consultant, will be terminated Dec. 31. Townsend has all this real estate expertise, but its more than we need, he said. I think well be well served by Summits real estate team.
Mr. Hutt said the board will save about $100,000 a year in fees by transferring the real estate work to Summit.
The board hired Summit over 15-year incumbent Callan Associates at its Sept. 3 meeting. At a board meeting Tuesday, Summit and Townsend each made their case for the real estate consulting business, Mr. Hutt said.
The system has about $216 million or 11% of total assets in real estate, with a 60-40 mix between core and non-core, Mr. Hutt said. We dont do any direct purchase of property, and we have very little international real estate exposure, he said.
In addition to its real estate holdings, the system had $786 million in domestic equities, $512 million in fixed income, $310 million in international equities, and $120 million in alternatives and cash, Mr. Hutt said.