Tennessee Fund Moves Into New Asset Class
Will Hire Director and Consultant for the Asset Class
August 26, 2008
The $25 billion Tennessee Consolidated Retirement System (TCRS) is reportedly planning to invest up to $900 million into private equity following a recent shift in the state's legislation.
According to local reports, Tennessee governor Phil Bredesen recently signed off on changes to the state's laws that had prevented the system from previously investing in the asset class.
Ed Hennessee, assistant state treasurer in Tennessee, explained that there is currently no timeline set up for the asset allocation shift. He said that it will be a year or more before any money goes into private equity.
He noted that the board is going to hire a new director to oversee the move into private equity, and that the TCRS needs to make policy regarding private equity investments before it can move forward. He also noted that a private equity consultant would be looked at following the hiring of the new director.
Hennessee said that the target for the private equity allocation would be 3%. According to the most recent annual report on the TCRS' Web site, the plan's asset allocation currently consists of 42% domestic fixed-income, 33% domestic equity, 16% international equity, and 3% each in international fixed-income, short-term securities and real estate.
Strategic Investment Solutions serves as the plan's general investment consultant.
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