The $34 billion Connecticut Retirement Plans and Trust Funds has tapped three firms to handle its program to source emerging and diverse investment managers for its global equity and global fixed income asset classes.
Attucks Asset Management will receive $200 million for global fixed income, while Xponance was awarded $200 million for developed international equity. Fund of hedge funds firm The Rock Creek Group was tapped for a $300 million allocation to emerging markets equity.
The announcement was made by the office of Connecticut State Treasurer Shawn Wooden, who said the decision is part of his recently launched Connecticut Inclusive Investment Initiative, a new emerging and diverse manager program also known as “Ci3,” which increases allocations to diverse managers across all asset classes. The initiative provides a pathway for growth within the program and expands outreach the emerging manager community to identify the best emerging and diverse talent in the industry.
“With the target percentage of allocated capital to emerging and diverse managers doubling with the new Ci3 program, we’ve been able to broaden our range of investment strategies and will continue to take advantage of greater opportunities to improve risk adjusted returns,” said Treasurer Wooden. “These managers have shown, through experience, their ability to source best in class emerging and diverse managers, and I look forward to working together to add value to the pension fund.”
As previously reported by Alternatives Watch, the program is now roughly a $1 billion fund of funds public markets program and includes a $155 million private equity allocation and a $170 million alternative investment allocation.
Additionally, Treasurer Wooden announced his decision with regard to the convertible bond strategy, awarding contracts to Advent Capital Management at $93 million and Calamos Advisors at $32 million. He also announced a commitment of $100 million to the Waterton Residential Property Venture XIV Fund, a real estate fund.
“All three strategies present compelling opportunities in the current environment as we navigate market uncertainty,” noted Treasurer Wooden. “These investments further diversify our exposures and will provide downside protection from potential losses in the equity markets. Contract negotiations with these partners are underway.”