Arkansas Teacher Retirement System, Little Rock, committed up to $100 million to private equity funds and terminated three strategies totaling $1 billion in assets, confirmed George Hopkins, executive director.
The $14 billion pension fund committed up to $75 million to Franklin Park private equity funds of funds: $25 million each to its Venture Fund 2014 and International Fund 2014, and an additional $25 million in a co-investment fund.
Franklin Park is the pension fund's private equity consultant and offers funds of funds to its clients. Arkansas Teachers has invested in the venture capital funds every year since 2008; it is the pension fund's fourth straight year in the international funds and third year making a co-investment.
The pension fund also committed up to $25 million to Atlas Capital Resources II, a turnaround private equity fund managed by Atlas Holdings. It is the pension fund's first commitment to Atlas.
Separately, the pension fund terminated two Western Asset Management Co. fixed-income portfolios — a $422 million core full-discretion strategy and $325 million unconstrained bond strategy — because of personnel changes in the firm's mortgage-backed securities team. WAMCO will continue to manage the assets until the pension fund decides how to adjust its fixed-income allocation, Mr. Hopkins said.
Also, Bedlam Asset Management withdrew as manager of a $259 million active global equity portfolio. Investment consultant Hewitt EnnisKnupp had advised the pension fund to terminate Bedlam following the departure in October of its chief investment officer. Bedlam announced in November it was winding down its business.
The assets have been moved into a State Street Global Advisors index fund.