Texas Municipal Retirement System, Austin, committed a total of $200 million to four real estate investment funds, confirmed Bill Wallace, spokesman for the $19.5 billion retirement system.
The board approved committing $75 million to a value-added fund run by Stockbridge Capital Group; $50 million each to value-added funds from Rubenstein Partners and Abacus Capital Group; and $25 million to an opportunistic Walton Street Capital fund.
The Walton commitment is an add-on to $50 million the board approved committing last September, Mr. Wallace said in an e-mail. The system has a 10% allocation to real estate.
ORG Portfolio Management assisted with the search.
Separately, the board approved changes to its investment policy to “enable further diversification of the TMRS equity portfolio,” Mr. Wallace said.
TMRS has a 40% allocation to equities divided equally between passively managed domestic and international index funds. The policy change will allow up to 10% of the equities portfolio to be managed using “fundamental indexing and low-volatility passive rules-based strategies,” Mr. Wallace said.
Mr. Wallace said an invitation-only search for rules-based managers will be conducted by staff and consultant R.V. Kuhns. The targeted strategy and number of managers have not been determined.