Pennsylvania Public School Employees allocates $750 million to 5 funds

Pennsylvania Public School Employees' Retirement System, Harrisburg, agreed to commit a total of up to $750 million to five alternative investment funds, according to documents from the $54.8 billion retirement system's website.

At its May 24 meeting, the board agreed to commit up to $200 million to ECM Feeder Fund 2, a feeder fund focused on Japan-based securities managed by Effissimo Capital Management.

It also agreed to commit up to $150 million each to TSSP Opportunities Partners IV, a private credit fund managed by TPG; Trilantic Capital Partners VI (North America), middle-market buyout fund; and AG Realty Value Fund X, a value-added real estate fund managed by Angelo, Gordon & Co.

Finally, the PennPSERS board agreed to commit up to $100 million to LEM Multifamily Senior Equity Fund V, a real estate fund managed by LEM Capital.

Also at its meeting, the board authorized the creation of the position of deputy executive director and director of defined contribution investments. The staff will look to fill this position.

For its defined contribution plan, PennPSERS added T. Rowe Price Group's Retirement Blend Trusts as the plan's default investment option.

The board also hired Voya Financial as its third-party administrator to provide record-keeping services for the DC plan. The RFP was originally issued in March, said spokeswoman Evelyn Williams.

PennPSERS' asset allocation as of Dec. 31 was 35.8% equities, 31.9% fixed income, 24.3% real assets, 10.4% risk parity, 9.7% hedge funds and 4.7% cash. It also has a -16.8% allocation to financing through leverage.