Institution: Connecticut Retirement Plans and Trust Funds
Headquarters: Hartford, US
AUM: $43.7 billion
Allocation to alternatives: 10.3%
Connecticut Retirement Plans and Trust Funds confirmed a $375 million commitment to a real estate offering managed by Morgan Stanley at its October 2021 investment advisory council meeting. The pension will be giving the $375 million commitment to Morgan Stanley Investment Management Real Assets Co-Investment Strategic Partnership.
At CRPT’s meeting, the pension considered a further commitment of $100 million to CityView Real Estate Partners VII, a fund that will invest primarily in multifamily projects. CityView was determined, through a due diligence report by NEPC, to be a favorable potential fund manager as it focuses on metropolitan markets such as Los Angeles that have the potential for increased demand through population and employment growth.
The pension also assessed the suitability of the commitment against ESG policies and resources. CityView demonstrated a firm-level commitment to ESG by creating an ESG task force and having 33 percent of its professionals being female and 54 percent from ethnic minority backgrounds firmwide.
Connecticut has a 19 percent target allocation to real assets which stood at 12.6 percent as of August 2021.
As illustrated below, the $43.7 billion US pension’s recent real estate commitments have primarily focused on diversified North American vehicles with value-add strategies.
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