Tallahassee (Fla.) Pension Plan made two new timber commitments totaling $45 million, said Kent Olson, the city's deputy treasurer-clerk.
The $1.6 billion pension fund committed $30 million to BTG Pactual Timberland Investment Group's Open-Ended Core U.S. Timberland Fund and $15 million to Timberland Investment Resources' Eastern Opportunities Fund III. The new commitments bring the pension fund closer to its 5% target to timber, Mr. Olson said.
The pension fund in 2017 had committed $30 million to a timber fund of funds managed by Stafford Timberland, and $15 million to a fund managed by Molpus Woodlands Group.
Separately, the pension fund created a 5% target to private credit, with commitments to begin in early 2019, Mr. Olson said. That allocation will be funded with reductions to the targets of domestic equities, to 36% from 40%, and domestic fixed income, to 19% from 20%. Targets that remain unchanged are: 15% real estate; 10% international developed markets equities; and 5% each, emerging markets equities, private equity and timber.
As of Sept. 30, the actual allocation was: 43.2% domestic equities, 18.9% fixed income, 15.8% real estate, 10% international developed markets equities, 4.7% emerging markets equities, 4.6% private equity, and 2.8% timber.
Investment consultant Segal Marco Advisors assists with all manager hires and commitments. The pension fund does not issue RFPs.