Fresno (Calif.) City Retirement Systems is seeking private value-add real estate managers to run $60 million to $80 million, said Robert Theller, retirement administrator for the $3.1 billion pension funds, in an email.
NEPC, the retirement systems' investment consultant, will conduct the closed, invitation-only search. The board expects to select managers in August.
The board approved the search at its joint meeting Tuesday.
Also at its meeting, the boards selected Monroe Capital to manage $150 million to $200 million in a U.S. private debt lending strategy.
It also approved a new asset allocation for its investment portfolios.
Targets to U.S. large-cap equities, non-U.S. developed equities, emerging markets equities and U.S. small-cap equities were dropped to 19%, 17%, 6%, and 6%, respectively, from their respective former targets of 21%, 19%, 11% and 8%, while the target to private equity was raised to 3% from 2%.
Meanwhile, its fixed-income target rose to 26% from 20%, and multiasset strategies rose to 4% from zero.
Within real assets, core real estate rose to 10% from 8%, non-core real estate rose to 4% from 3%, private real assets/infrastructure rose to 5% from 4%, while midstream energy dropped to zero from 4%.
As part of its new asset allocation, the boards agreed to fully redeem its $60 million position within the J.P. Morgan Property Fund. The move would increase the size of its value-add/opportunistic portfolio.