Kentucky Retirement Systems, Frankfort, hired Nuveen Asset Management to run approximately $350 million in its real asset income strategy, said David Peden, chief investment officer.
The allocation will fall under the $16 billion pension fund’s real return/real assets allocation, which has a 10% target.
RVK, the pension fund’s general consultant, assisted.
Separately, the board approved a total of $100 million in commitments.
The pension fund committed $60 million to BDCM Opportunity Fund IV, a distressed debt fund managed by Black Diamond Capital Management. This is a first-time commitment.
The pension fund also committed $40 million to Ares Special Situations Fund IV, a distressed debt fund managed by Ares Management.
The pension fund has a 10% target to private equity.
Finally, the pension fund lowered its assumed rate of return to 7.5% from 7.75%. Mr. Peden said the 7.5% rate of return is a “more prudent return target” for the pension fund going forward.
