Florida State Board of Administration, Tallahassee, announced $5.7 billion in manager hires, investments and commitments in a new managers report emailed by spokeswoman Emily Percival.
The board manages $262.4 billion in state assets including the $203 billion Florida Retirement System Defined Benefit Pension Plan.
Within fixed income, the board hired J.P. Morgan Asset Management to run $2 billion and Allspring Global Investments to run $839 million in active core fixed-income portfolios. Percival said the hirings were the result of the board’s approval in October 2023 of increasing the fixed-income target to 21% from 18%. Funding comes from rebalancing.
As of Aug. 31, the FRS pension plan’s actual allocation to fixed income was 21.2%.
Within global equity, the board hired PanAgora Asset Management to run $1 billion in its active dynamic global equity strategy. Funding comes from rebalancing, said Percival.
As of Aug. 31, the FRS pension plan’s actual allocation to global equity was 48.4%; the target is 45%.
Within its active credit asset class, the board hired State Street Global Advisors to run $636 million in a passive high yield portfolio and $211 million each in passive hard currency, local currency and blended emerging markets debt portfolios, and committed $150 million to ICG Europe Mid-Market Fund II, a private credit fund managed by Intermediate Capital Group.
The active credit asset class, with a target allocation of 7%, was created in October 2023. It is split into direct lending and multiasset public credit, with targets of 4% and 3%, respectively, of total FRS assets.
As of Aug. 31, the FRS pension plan’s actual allocation to active credit was 4.8%.
Within real estate, the board committed $150 million to WCP NewCold III, a value-added real estate fund managed by Westport Capital Partners; invested $59 million and $56 million, respectively, to iStorage JV II OKC Holdings and iStorage JV II RGV Holdings 1, both self-storage real estate portfolios in a joint venture between the board and manager Heitman; an additional $52 million in Crescent BTR, a single-family real estate portfolio in a joint venture between the board and Heitman (the board previously invested $8 million earlier this year); and $47 million in Crescent BTR Greensboro Hobbs Road, another single-family real estate portfolio in a joint venture between the board and Heitman.
As of Aug. 31, the FRS pension plan’s actual allocation to real estate was 9.2%; the target is 12%.
Within private equity, the board committed $32 million to Inflexion Enterprise Fund VI (No.1), a buyout and growth equity fund managed by Inflexion Private Equity Partners; $10 million each to Ontic-Typhoon Co-Investment, a co-investment fund managed by CVC Capital Partners, and Trace Sabre Co-Invest Fund, a co-investment fund managed by Trace Capital Management; and $5 million to WEP ELIDO I Pond Co-Investment, a co-investment fund managed by Warren Equity Partners.
As of Aug. 31, the FRS pension plan’s actual allocation to private equity was 9.1%; the target is 10%.
