Texas Municipal Retirement System, Austin, is conducting a shortlist search for core real estate managers to run $500 million, confirmed Bill Wallace, spokesman for the $19.5 billion pension fund.
The number of managers has not been determined.
Interested managers can contact ORG Portfolio Management, the retirement system's real estate consultant. Mr. Wallace said the pension plan's investment staff and ORG are expected to bring recommendations to the board in September.
H/2 Capital Partners had been selected to run $100 million in core real estate in September, but the board and H/2 Capital couldn't reach an agreement on a contract and the $100 million was added to an earlier $400 million shortlist search, Mr. Wallace said.
Separately, the board removed BlackRock's core fixed-income portfolio from its watchlist. BlackRock manages about $8.2 billion. BlackRock had been put on watch because of personnel changes, loss of clients and concern with their “composite investment performance,” according to minutes at the time. It was taken off the list because the company “met or exceeded the criteria for being removed from the list,” Mr. Wallace said.