Kentucky Teachers' Retirement System, Frankfort, committed a total of $200 million to three managers, said Gary Harbin, executive secretary.
The retirement system approved an initial commitment of $100 million to Babson Capital European Loan Fund on behalf of its $18.1 billion pension fund, Mr. Harbin said.
The Babson fund is managed by Babson Capital Management and invests primarily in a diversified portfolio of senior secured loans issued by European companies, a news release from Babson Capital Management said.
Separately, the pension fund and the retirement system's $500 million medical insurance plan, which funds retiree health benefits, committed $30 million and $10 million, respectively to Oaktree Mezzanine Fund IV, managed by Oaktree Capital Management.
Additionally, the two funds committed $50 million and $10 million, respectively to Hellman & Friedman VIII, a trans-Atlantic buyout fund.
Finally, the pension fund returned a net 18.1% for the fiscal year ended June 30, surpassing its benchmark of 17.4%.
The pension fund's target allocation is 38% domestic large-cap equity; 19% international equity; 17% fixed income; 9% other, which includes high-yield bonds and bank loans; 5% alternatives, which includes private equity, timberland and infrastructure; 5% real estate, 3% domestic midcap equity; 2% small-cap equity; and 2% cash.
