The Texas Municipal Retirement System has approved $775m (€711.8m) in new allocations covering mostly REITs and infrastructure.
The US pension fund awarded $375m to Nuveen Asset Management and $400m to Cohen & Steers Capital Management, as stated by the pension fund in a board-meeting document.
The investment managers run separate accounts for the pension fund.
Texas Municipal began its relationships with the managers in December of last year, allocating each $350m.
All of the new capital for Nuveen will be invested in a mixture of REITs and infrastructure.
Capital placed into REITs will be invested in global REITs for preferred equity and debt.
The infrastructure investment will be in the US and abroad and include existing infrastructure properties, debt and preferred equity.
The Nuveen strategy focuses on investments backed by tangible, long-term assets that demonstrate consistent cash-flow streams from long-term contracts and concessions.
Cohen & Steers has a multi asset class strategy.
Some of the capital will be used to invest on a global basis in REITs, infrastructure and natural resources.
Texas Municipal said the strategy focused on asset allocation and bottom-up security selection as a means to outperform markets when stock and bonds are underperforming historical averages.
The investment strategy has an inflation-sensitive return profile and non-inclusion global-inflation-linked bonds.
The pension fund uses the real return asset class overall for inflation protection, return enhancement and diversification.
Benchmarking for the asset class is at least 400 basis points over the CPI.
Related Companies
- Previous
- Next
