Indiana Public Retirement System, Indianapolis, allocated $75 million each to Mack Real Estate Group and a private equity fund managed by Hellman & Friedman, Scott Davis, chief investment officer of the $34.8 billion system, said at a board meeting Friday.
Mack will manage the assets in its Claros Mortgage Trust, a private mortgage real estate investment trust, Mr. Davis said in a report to the board.
The private equity commitment will go to buyout fund Hellman & Friedman Capital Partners IX.
The Mack commitment is INPRS' first to the firm. INPRS had a combined $107 million in three Hellman & Friedman funds as of Sept. 30.
The system had 6.1% of its assets in real estate and 12.4% in private markets as of Sept. 30.
The system also retained BlackRock, Northern Trust Asset Management, RhumbLine Advisors and State Street Global Advisors as passive securities managers, Mr. Davis said.
BlackRock will manage a total of $3.45 billion in international equity, emerging markets equity, global fixed-income and large-cap equity portfolios. Northern Trust will run a combined $2.92 billion in U.S. fixed income and Treasury inflation-protected securities; RhumbLine, $2.59 billion in domestic large-cap and small-cap equities; and State Street, $1.41 billion in global government bonds.
An RFP was issued March 12. Mr. Davis said the intent was to get lower fees from passive managers; the system will annually save $400,000 in fees for its defined benefit plans and $300,000 for its defined contribution plan, he said.
"We were working to find the best managers and the best fees," Mr. Davis said. "I think we hit our goals."
Separately, in the quarter ended Sept. 30, the system returned 1.6% compared to its 1.34% custom benchmark return, according to Mr. Davis' report.
The system's asset allocation as of Sept. 30 was 22.5% global public equity, 19.4% ex-inflation-linked fixed income, 12.6% risk parity, 12.4% private markets, 9.6% absolute return, 8.8% commodities, 7.1% inflation-linked fixed income, 6.1% real estate, and the remainder in cash and cash overlay.
