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Jacksonville Beach pension boards approve $2.5 million commitment to Stockbridge Smart Markets Fund
Summary
The three Jacksonville Beach pension boards voted to commit a collective $2.5 million to the Stockbridge Smart Markets Fund to reduce a roughly $2 million underweight in real estate created by redemptions from a JPMorgan fund; the motion passed by roll call across the boards and staff will complete subscription paperwork and stage capital calls.
The Jacksonville Beach retirement system boards voted to commit $2,500,000 collectively to the Stockbridge Smart Markets Fund during their quarterly meeting, approving a consultant recommendation to begin closing a shortfall in the plan's real‑estate allocation. The motion was made on the floor, seconded, and carried by roll call across the three trustee boards.
Board members and the investment consultant framed the move as a staged, tactical step to restore the system’s target allocation after redemptions from a JPMorgan real‑estate vehicle left the plans about $2.0 million underweight as of Sept. 30. The consultant recommended a modest, staged commitment rather than a single large subscription so the fund can be sized to match incoming cash from the JPMorgan redemptions and portfolio rebalancing.
Stockbridge presented the Smart Markets Fund earlier in the meeting, describing it as an income‑focused, open‑end real‑estate fund launched in 2011 with a Southeast and grocery‑anchored retail tilt. Cormac Daugherty, Stockbridge senior vice president, told trustees the fund had raised substantial commitments recently and that its trailing income return was a key feature the firm emphasizes. Darren Clice of Principal (a separate presenter) stressed liquidity mechanics in open‑end funds during the earlier discussion: “We strike a daily net asset value for this fund,” he said, explaining how daily NAV and occasional withdrawal queues affect investor flows.
The motion recorded a collective commitment of $2,500,000 to Stockbridge. Trustees discussed funding mechanics and agreed Pedro (staff/legal/consulting support noted in the meeting) would prepare subscription documents and coordinate paperwork. Managers told trustees timing for capital calls can vary; Stockbridge and TA Realty said calls typically occur within one to two quarters once an investor is in their entrance queue, while Principal said it can be more flexible in accepting smaller inflows. The consultant advised staging additional commitments later if JPMorgan distributions accelerate.
The vote was recorded by roll call for the boards present; clerks announced affirmative responses and the chair declared the motion carried. The boards directed staff to proceed with subscription paperwork and to revisit additional commitments as JPMorgan redemptions and the system’s cash flows evolve.
The next procedural step: staff will finalize subscription documents and report back to the boards with timing for the first capital call and any need for further rebalancing.
