Texas Permanent School Fund, Austin, selected three firms to manage a total of $1.35 billion in the fund's first emerging markets local currency debt allocation, representing about 5% of total fund assets.
Ashmore Investment Management, Investec Asset Management and Stone Harbor Investment Partners each were awarded $450 million to run in active strategies.
Approval for the hires was granted at a July 19 meeting of the State Board of Education, which oversees investment of the $27.6 billion educational endowment, confirmed DeEtta Culbertson, a board spokeswoman.
Separately, the board approved commitments totaling up to $225 million to three real estate managers.
Up to $75 million was committed to DRA Growth & Income Fund VII, a value-oriented fund managed by DRA Advisors; up to $50 million was earmarked for the opportunistic GTIS U.S. Residential Strategies Fund, managed by GTIS Partners; and up to $100 million of additional capital was committed to the UBS Trumbull Property Fund. The school fund invested $100 million in 2010 in the core real estate fund.
After a search, incumbent Courtland Partners was selected for a five-year contract for real estate consulting services, effective Sept. 1. Courtland's previous five-year contract ends Aug. 31. Townsend Group was the other finalist.
Finally, the board approved the Finance Committee's recommendation to extend BNY Mellon's contract for global custody and securities lending services for four years, effective Sept. 1.
