Nashville (Tenn.) & Davidson County Metropolitan Government Employee Benefit Trust Fund committed up to $40 million to PIMCO Corporate Opportunities Fund II, a corporate distressed credit fund, said Fadi BouSamra, chief investment officer, in an e-mail.
It is the $2.7 billion pension fund’s first commitment to a fund managed by Pacific Investment Management Co.
Separately, the pension fund returned 1.27% in the fiscal year ended June 30. The pension fund’s best-performing asset class was private equity, which returned 16.23%, followed by real assets at 5.99%, fixed income at 4.06% and fixed-income alternatives at 1.22%.
Domestic equities returned -0.42% for the fiscal year, while long/short equity was down 7.59% and international equities returned -9.86%.
As of June 30, the actual allocation was 23.6% fixed income alternatives, 15.3% private equity, 14.8% fixed income, 13.7% domestic equities, 12.1% international equities, 11.3% real assets, 7% long/short equities and 2.2% cash.
Target allocations are 37.5% domestic and international equity; 15% each alternative and traditional fixed income; 12.5% real assets; and 10% each long/short equity and private equity.
