Investors - DECEMBER 9, 2014

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City pension plan makes first venture into real estate

by Reg Clodfelter

The City of Atlanta General Employees Pension Fund has made its first venture into real estate, selecting two managers to run a core-plus strategy. The pension plan has selected JP Morgan Asset Management and Intercontinental Real Estate to each manage half of the pension plan’s $34 million to $36 million real estate allocation, according to recently released board minutes. The managers are expected to run a core-plus strategy.

The $1.2 billion pension plan also interviewed Prudential, UBS Trumbull and Brentwood Capital Partners as potential managers before landing on JP Morgan and Intercontinental. Brentwood was selected for interview because, among other factors, it is a minority-owned firm local to the Atlanta area.

It was suggested that Brentwood be selected as a third manager to run a small part of the allocation and target the student housing sector, though it was eventually decided against as Brentwood’s portfolio uses below-investment-grade

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