Pennsylvania State Employees' Retirement System, Harrisburg, approved $287 million in commitments, the $29 billion pension system announced.
At its meeting Tuesday, the board committed up to €100 million ($112 million) to two real estate funds managed by Activum SG Capital Management — Activum SG Fund VI and Activum SG Fund VI Co-Investments. The funds will focus on value-added opportunistic investments in a variety of property types primarily in Germany and Spain.
In addition, the PennSERS board committed $75 million to KPS Special Situations Fund V and $25 million to KPS Special Situations Midcap Fund. Both special situation buyout funds managed by KPS Capital Partners will target operationally stressed and distressed companies in the following industries: basic materials, industrial components and equipment, and branded consumer goods.
The board also committed up to $75 million to Wind Point Partners IX-A, a North American midmarket buyout fund that targets companies in consumer products, industrial products and business services.
The board also agreed to make BlackRock LifePath target-date funds the default investment option for the $3.6 billion PennSERS deferred compensation plan. "The target-date funds, which were originally rolled out as part of the SERS defined contribution plan, will replace four profile risk-based funds that are made up of a static allocation currently in the deferred compensation plan." The board also added the Global Non-U.S. Stock Index Fund to the deferred compensation plan to replace the International Company Stock Index Fund. The new fund includes Canada and emerging markets, unlike the replaced one. Mellon Capital Management is the manager of both funds.
In addition, the board moved to appoint Deputy Chief Investment Officer James G. Nolan as acting CIO, effective Aug. 3, until the board appoints a new CIO. Mr. Nolan will replace W. Bryan Lewis, who is leaving the system effective Aug. 2 to pursue another career opportunity.
