The Public Employees’ Retirement System board voted to approve a $75,000,000 commitment to TA Realty Fund 14 and authorized staff to begin a manager search to replace Baillie Gifford in the All Country World ex-U.S. allocation.
The investment committee presented the recommendations after a two-day committee process that included a market update and performance review from consultants Callan. The committee reported that PERS’s fiscal-year 2025 return was 11.66% and that the system ranked in the top 20% of its peer group; the fiscal-year-to-date return as of Aug. 25, 2026, was presented as 2.46%.
Investment staff recommended the $75 million commitment to TA Realty Fund 14 to secure fee-reduction incentives available to returning investors. The board voted to approve the staff recommendation.
The committee also moved to place the Baillie Gifford All Country World ex-U.S. fund on a search list and to approve search criteria for a replacement manager. The presentation noted that Baillie Gifford had a $750,000,000 allocation that would be reallocated to the new manager, which will be benchmarked against the MSCI (Morgan Stanley Capital International) Equity ex-U.S. index and measured against the Callan non-U.S. equity peer group. The search criteria allow inclusion of additional candidates beyond those recommended by Callan.
Board chair acknowledged the motion and members voted unanimously to carry the committee recommendations. No further board amendments to the recommendation were recorded.
Less-critical details: the investment committee also heard presentations from global REIT managers CenterSquare and Cohen & Steers during the meeting; both managers presented positive results for their segments based on the data they provided.