Phoenix City Employees’ Retirement System committed $30 million to Wheelock Street Real Estate Fund II, a non-core real estate fund managed by Wheelock Street Capital, confirmed Greg Fitchet, investment manager for the $2.1 billion pension fund.
The pension fund previously committed $20 million to Wheelock Street Real Estate Fund I.
Separately, the pension fund committed $20 million to Northwood Real Estate Partners, a non-core real estate fund managed by Northwood Investors.
Mr. Fitchet said the commitments are part of an effort to get the pension fund’s overall real estate allocation closer to its 15% target.
Investment consultant R.V. Kuhns & Associates assisted.
Also, as part of its absolute-return allocation, the pension fund will also seek two or three direct investments over the next year with global macro managers. The pension fund created a 15% target to absolute return in June as part of an asset allocation study, replacing its 10% target to long/short equities.
The asset allocation study was done by R.V. Kuhns following a special city referendum March 12 that amended the investment standards, legal status and funding provisions for the pension fund.
Previously, the pension fund could not invest in asset classes such as private equity, high-yield debt and some real asset classes. Mr. Fitchet said private equity and real asset commitments should be coming in the next year as well.