Arkansas Public Employees Retirement System, Little Rock, committed $30 million each to value-added real estate managers TA Associates Realty and LaSalle Investment Management, according to recently released minutes of a special board meeting on April 11.
TA Realty was chosen for its “emphasis on smaller properties” and LaSalle for its “high income stream,” according to the minutes. The other finalists were AEW Capital Management and CBRE Global Investors.
Callan Associates, the $6 billion retirement system's investment consultant, assisted.
Separately, the board approved a shortlist search for a “fund-of-one” hedge fund manager to run $100 million.
Executives from Grosvenor Capital Management presented an education discussion on funds of funds at the February board meeting. Gail Stone, APERS executive director, recommended a fund-of-one approach at that time to “avoid excessive energy exposure,” according to the minutes.
Also, the board rehired BNY Mellon as global custodian after the bank agreed to a $2 million reduction in fees over the next five years. State Street Corp. was the other finalist.
Ms. Stone did not return a telephone call by press time for additional information.