Arkansas Teacher Retirement System, Little Rock, committed or invested up to $490 million total with nine managers, said George Hopkins, executive director.
The $14.4 billion pension fund hired Allianz Global Investors to manage up to $200 million in its Structured Alpha Global Equity 350 strategy. It already has roughly $120 million invested in Allianz’s Structured Alpha U.S. Equity 250 strategy and $580 million in its Structured Alpha Global Equity 500 strategy. The number at the end of each strategy’s name describes basis points of tracking around the target index, the MSCI All Country World index.
Funding will come from Jacobs Levy Equity Management’s Core Equity fund and Voya Investment Management’s Small-Cap Growth fund, which were eliminated to reduce small-cap bias in the equity portfolio. Their removals were not related to performance. The remainder of the redeemed funds will be transferred to passive equity manager BlackRock as well as other Jacobs Levy equity and Voya strategies that were not affected by the change.
In private equity, the pension fund committed up to $85 million total to three buyout funds: up to $35 million to Bison Capital Partners V, managed by Bison Capital Asset Management up to $30 million to Arlington Capital Partners IV; and up to $20 million to Altaris Constellation Partners, a health-care focused fund managed by Altaris Capital Partners that will invest alongside Altaris Health Partners III.
In real estate, the pension fund committed an additional up to $50 million to UBS Trumbull Property Income Fund, an open-end core real estate fund managed by UBS Realty Investors. How much the pension fund previously committed could not be learned by press time. It also committed up to $30 million to LaSalle Asia Opportunity Fund V, managed by LaSalle Investment Management, and up to $25 million to CBRE Strategic Partners U.S. Value 8, a value-added fund managed by CBRE Global Investors that targets institutional-quality multifamily, office and retail properties.
The pension fund approved an initial commitment to the UBS Trumbull fund in 2006. It also previously committed $50 million to UBS’ AgriVest Farmland Fund in 2013 and previously committed to CBRE Strategic Partners U.S. Opportunity Fund 5 in 2008. The size of the CBRE commitment could not be learned.
Additionally, the pension fund committed up to $100 million to the Arkansas Opportunity Fund, a diversified fund managed by Stephens Inc. and Neuberger Berman that will seek investment opportunities in the range of $6 million to $12 million across various asset classes, including private equity, private debt and real assets in Arkansas and globally.
The pension fund also invested up to $25 million for 31% equity ownership in Highland Pellets, a wood pellet manufacturing facility.