Arizona State Retirement System, Phoenix, committed $300 million to Oz ASRS Aviation Finance Fund, recently released investment committee meeting materials show.
The $39.8 billion pension fund's investment committee disclosed the commitment to the customized fund-of-one partnership at its March 25 meeting. The partnership with Och-Ziff Capital Management Group "invests in aircraft leasing primarily through levered, securitization vehicles," the materials said.
The commitment falls within the "other credit" portfolio in the pension fund's credit asset class. The allocation to "other credit" as of March 12 was 1.1% of the total pension fund's assets. The total credit allocation was 17.3%.
The pension fund's "other credit" subasset class consists of "credit opportunities that are not encompassed in private debt, distressed debt or high yield, and offer an expected return which will likely meet or exceed the credit asset class benchmark," the materials said.
Pension fund spokesman David Cannella could not be immediately reached to provide further information.