Texas Municipal Retirement System, Austin, allocated $1.75 billion total to seven managers, spokesman Bill Wallace said in an e-mail.
Of that, $950 million total was allocated to four direct lending managers — Golub Capital, H.I.G. WhiteHorse, TCW Group and White Oak Global Advisors. Golub and TCW will each manage $300 million; White Oak, $200 million; and H.I.G WhiteHorse, $150 million.
Funding will come from the core fixed-income portfolio with no terminations, Mr. Wallace said. Further information on the funding could not be learned by press time.
In the summer, the $25 billion pension fund reduced its core fixed-income target to 10% from 30% and raised its non-core fixed-income target to 20% from 10% as part of a new asset allocation.
The remaining $800 million was allocated to three real-return managers — Nuveen Asset Management, Cohen & Steers Capital Management and Magnetar Capital. Nuveen and Cohen & Steers will each manage $350 million and Magnetar, $100 million. Nuveen will invest in infrastructure and real estate related securities. Cohen & Steers will invest in infrastructure, commodity, real estate, short duration credit and natural resources equity related securities. Magnetar will focus on investments in the North American energy industry.
Also this summer, the board doubled its real-return target to 10%. Funding sources for the new real-return managers could not immediately be learned.
Finally, the pension fund rehired RVK as its non-discretionary general investment consultant.
An RFP was issued in September due to RVK's Dec. 31 contract expiration.