New York State Teachers' Retirement System, Albany, has approved two real estate commitments totaling up to $117 million.
The pension fund's governing board on Thursday voted to approve a $90 million commitment to the Kettler Multifamily Development & Repositioning JV III, as well as a follow-on commitment of $27 million to the Kettler Multifamily Development & Repositioning JV II. They are managed by Kettler, a real estate development and property management company.
The board previously committed up to $90 million to Kettler Multifamily Development & Repositioning JV II in November 2012.
Both investment vehicles focus on “multifamily development projects in high-growth markets,” John Cardillo, a pension fund spokesman wrote in an e-mail Thursday.
The pension system reported assets of $106.5 billion as of March 31, up slightly from $106 billion as of Dec. 31.
The investment return, net of fees, was 3.5% for the three months ended Dec. 31, 2015, the second quarter of the current fiscal year. Audited results for the quarter ended March 31 were not available.
The board also announced renewals of several investment manager contracts, each for one year; each renewal will take place at the expiration of the current contracts. The renewals are for:
- Wellington Management, which manages $957.4 million in global aggregate fixed income benchmarked to the Barclays Capital Global Aggregate Float Adjusted bond index, effective June 20;
- LSV Asset Management, which manages $530.5 million in active international equities benchmarked to the MSCI ACWI ex-U.S. index,effective July 25;
- Cohen & Steers Capital Management, which runs $494.9 million in a total-return mandate and $361.9 million in an income-oriented strategy by actively investing in real estate investment trusts and real estate operating companies, both effective July 1; and
- RREEF America, which manages $382.4 million by actively investing in real estate investment trusts and real estate operating companies, effective July 1. RREEF America is a unit of Deutsche Asset Management.
The board also announced that Chairman R. Michael Kraus will retire June 30, having served 24 years on the board and having been chairman since 2009. Mr. Kraus is president of R.M. Kraus & Associates, an insurance company. Board members will elect a new president at the next quarterly meeting scheduled for Aug. 3. Until then, David P. Keefe, the board's vice president, will lead the board and will be eligible to be elected president.