Trustees for the Austin-based Employees Retirement System of Texas have approved hiring general investment consultant NEPC for a six-year term beginning in January.

While incumbent investment consultant Aon made the finalist list along with Verus Advisory, staff told trustees at the 12 December 2018 investment committee meeting that NEPC’s resources and research capabilities stood out and that it seemed to be time to have a fresh set of eyes on the portfolio.

The $29bn pension fund continues to hire emerging managers. CIO Tom Tull told trustees he is looking to ramp up ERS Texas’ seeding platform for hedge funds in fiscal year 2019.

As of 30 September 2018, the system had four hedge funds within the emerging manager programme totaling $359m.

According to newly released board documents, current emerging manager hedge funds are: Complus Asia Macro Fund ($116m); Glazer Enhanced ($130m); LLSD II ($3m); and Southpaw Credit Opportunities ($110m).

The hedge fund team is continuing to develop ERS Launchpad, a co-investment seeding platform with Paamco  launched last year.

In October an event hosted by Texas ERS and Paamco at the headquarters of KKR in New York City drew 35 managers, who were invited to present over two days. More than 200 firms requested to participate, Panayiotis Lambropoulos, hedge fund portfolio manager at ERS Texas, told trustees.

Texas ERS/Paamco hasn’t made any financial commitment to the participating managers, but staff plan to follow up them. The pension is not limited to those initial conference participants, however, and plans to consider more managers alongside Paamco.

Officials are also considering hosting a luncheon in Austin for asset allocators interested in participating on the Paamco Launchpad. Another forum for managers may also be held in Austin, according to Lambropoulos.

The pension fund anticipates making initial commitments of $100m to $150m to the emerging managers, with Paamco matching every dollar that ERS Texas commits.

ERS Texas will hold its annual emerging manager conference with Texas Teachers on 7 February 2019.

ERS Texas selects NEPC to replace Aon as general consultant on HFM InvestHedge.