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Trustees weigh real‑estate redemptions, infrastructure and private alternatives; Genter to receive short‑term bond holdings
Summary
Trustees reviewed partial real‑estate redemptions and where to deploy proceeds — fixed income, infrastructure, or private alternatives — and were told a new fixed‑income manager will inherit most short‑term securities the board has been holding.
Trustees reviewed options for proceeds from partial real‑estate redemption requests and discussed potential alternatives on Oct. 23. Scott Owens, the plan’s investment consultant, told trustees that AEW had been honoring quarterly redemptions since May 2023 while UBS suspended redemptions in 2025; the plan has been holding distributions in an interest‑bearing account awaiting a policy decision.
Board members and staff discussed three practical redeployment options: (1) maintain cash for distributions, (2) increase fixed‑income exposure now that yields have improved, or (3) shift money into alternatives such as global infrastructure. Owens and staff noted Lazard’s infrastructure vehicle emphasizes toll roads and similar cash‑generating assets and has shown lower volatility and steady income relative to other infrastructure benchmarks.
Separately, staff reported a transition of the plan’s short‑term bond holdings. SiegelBryant retained 78 short‑term bonds; the incoming manager (referred to as Genter/Jenter in meeting materials) agreed to acquire most holdings and will take possession of about $7 million in cash next week and inherit roughly $8 million in securities. Staff said SiegelBryant has been tasked with liquidating the remaining 28 bonds and that trustees would receive an introductory presentation from the incoming manager after an initial operating period.
Private equity and private credit were discussed as potential next steps for reallocated funds, but trustees deferred a substantive decision and asked for an educational session at a future meeting. Owens summarized the tradeoffs: alternatives and private strategies are generally less liquid and more expensive, while infrastructure and fixed income offer more predictable income and liquidity depending on mandate.
