The governing board of the New York State Teachers' Retirement System, Albany, authorized agreements to hire three separate account advisers and make a $200 million follow-on commitment to a current separate account.
The board took the actions Thursday at its quarterly meeting.
The board authorized separate account agreements with LSV Asset Management and Harding Loevner to manage a portion of the pension system's active global equity assets benchmarked to the MSCI ACWI index, for a period of one year, subject to the satisfactory completion of due diligence. The board approved an initial allocation of $500 million for each manager, said John Cardillo, a spokesman for the $120.7 billion pension fund, in an email. As of Dec. 31, the pension fund's actual international equity allocation was 20.5%.
The board also authorized an agreement with Federal Capital Partners to act as a separate account adviser "to assist with the acquisition, management and exit of" U.S. multifamily real estate assets, Mr. Cardillo wrote. The pension system has made previous commitments totaling $225 million to Federal Capital Partners funds.
Also, the board authorized the commitment of an additional $200 million to a separate account managed by Prima Capital Advisors to invest commercial mortgage-backed securities, investment-grade real estate investment trusts, first mortgage loans and related investments. As of November 2017, Prima had managed $648 million in this separate account, Mr. Cardillo wrote.
As of Dec. 31, the actual real estate debt allocation was 4.3% of total system assets; real estate equity's allocation was 9.7%.
In addition, the board renewed its agreement with TorreyCove Capital Partners to serve as the pension fund's private equity consultant, for one year, effective May 1, 2018. TorreyCove has been the private equity consultant since 2014. Private equity accounted for 6.2% of pension fund assets as of Dec. 31.
The board also reported that the pension fund returned a net 3.5% for the three months ended Sept. 30, the first quarter of the retirement system's current fiscal year.
