Denver Employees Retirement Plan hired Tortoise Capital Advisors to run $40 million in its energy infrastructure master limited partnership, confirmed Steve Hutt, executive director of the $1.7 billion system.
Kayne Anderson Capital Advisors and Harvest Fund Advisors were the other finalists in the shortlist search that began in the fourth quarter. General consultant Summit Strategies assisted.
The new portfolio will actively manage publicly traded stocks of “limited-partnership companies that operate mostly energy pipelines for both natural gas and oil in the U.S.,” Mr. Hutt said in a telephone interview.
The investment is part of the system's alternative investments allocation. He said the investment would be funded through rebalancing and no managers would be terminated.
The plan's current asset allocation is 37% domestic equities, 30% fixed income, 21% international equities, 7% real estate and 5% alternatives. Its targets are 34.5% U.S. equities, 21.5% fixed income, 17.5% international equities, 10% real estate, 7.5% private investments, 5% high yield, 2.5% emerging markets and 1.5% TIPS.
Separately, Summit Strategies will present its annual asset allocation report and make recommendations for asset allocation strategy at the system's March 19 board meeting, Mr. Hutt said.