MassHousing Evaluates Emerging Market Debt, Equities, PE Managers

The Massachusetts Housing Finance Agency Retirement System (MassHousing) elected to retain its emerging market debt managers and is reviewing its emerging market equities and private equity strategies, according to recently published minutes from its August 13 board meeting. 

In private equity, the MassHousing board selected Constitution Capital Partners, HarbourVest Partners, and Mesirow Financial to interview from the 17 responses it received to its private equity RFP. That search carries a mandate of up to $20M, and consultant Meketa noted in the board materials that MassHousing is underweight in the asset class, with a current allocation of 13% against a target of 17%.

The MassHousing board also said it reviewed the 24 responses to its emerging market equities manager RFP, motioning to interview three fund managers, GQG Partners, Pzena Investment Management, and ABS Global Investments. The pension said that in order to reduce volatility, it will seek to move from one manager holding $26M to allocating $13M each to two managers. MHFA’s current manager is High Advantages GQG. Meketa, which assisted with the searches, recommended keeping GQG, and the board noted it could ultimately allocate $6.5M each to two additional funds.

In emerging market debt, MassHousing will retain Aberdeen and MetLife, which will manage a combined mandate of $10M. The board noted that it received 14 fund managers to its emerging market debt RFP.

According to Dakota data, MHFA oversees $250M in assets.

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