Texas Municipal Retirement System, Austin, approved approximately $783 million total in real estate commitments, spokesman Bill Wallace said in an e-mail.
Commitments were approved for the following real estate funds, pending successful contract negotiations:
- $250 million to USAA Eagle Real Estate Feeder 1, managed by USAA Real Estate;
- $200 million total to H/2 Capital Partners — $125 million to H/2 Credit Partners and $75 million to H/2 Core Real Estate Debt Fund;
- $100 million to TPG Real Estate Partners II, an opportunistic fund;
- $75 million to Rubenstein Properties Fund III, a value-added fund managed by Rubenstein Partners;
- $75 million to Torchlight Debt Opportunity Fund V, managed by Torchlight Investors;
- $50 million to Alcion Real Estate Partners Fund III-B, managed by Alcion Ventures; and
- €30 million ($33 million) to European Property Investors Special Opportunities 4, managed by Tristan Capital Partners.
Also, the $24 billion pension fund reduced its target allocation to core fixed income to 10% from 30% and increased its non-core fixed-income, real-return and absolute-return targets. Non-core fixed income was increased to 20% from 10%, and real return and absolute return each doubled to 10% from 5%. The changes followed an asset allocation study by general investment consultant RVK. The rest of the target allocations were unchanged: 17.5% each domestic equity and non-U.S. equities; 10% real estate and 5% private equity.
It could not be learned by press time whether the target changes will result in any searches or terminations.
The pension fund also approved reducing its future investment return assumption to 6.75% from the current 7% based on the above target allocation and a recommendation from its consulting actuary Gabriel Roeder Smith.