Arizona Public Safety Personnel Retirement System, Phoenix, made up to $190 million in four commitments at its board meeting Aug. 25, confirmed James Hacking, administrator of the $6.2 billion system.
The system committed up to $70 million to the Franklin Templeton Emerging Markets Debt Opportunities Fund; up to $40 million to the Jefferies Commodity Program-Diversified II Strategy; and up to $40 million to the JMI Equity Fund VII, a venture capital fund. The system also increased the amount it will invest in the U.S. inflation-indexed bond strategy by Fischer Francis Trees & Watts to $90 million from $50 million, Mr. Hacking said in a telephone interview.
All four commitments are subject to due diligence.
“Some (of the funding for the investments) will come out of equities; it's really part of our fixed-income diversification strategy,” he said.
He said that investment staff would be bringing “a lot” of investment recommendations to the board in an effort to bring greater diversification to its fixed-income allocation, which has largely been invested in enhanced passive enhanced passive strategies.
“In the past, our fixed-income exposure was primarily in U.S. corporate bonds, and what we're doing is diversifying into global fixed income, particularly sovereign debt and emerging market debt,” he said.