Kentucky Retirement Systems
KRS has become aware of correspondence sent to several employees of the Commonwealth from Unite Here, an organization that represents workers throughout the U.S. and Canada who work in the hospitality, gaming, food service, manufacturing, textile, laundry, and airport industries. This correspondence expresses many viewpoints and references Neil Bluhm, a principal in Walton Street Capital real estate investment firm, which has several public pension investors including KRS. Consistent with Board policy, KRS has not taken a position regarding the organization of workers. KRS’ only interest is in Walton Street Real Estate Fund VI and Walton Street Real Estate Fund VII, both of which were approved by the KRS’ Investment Committee in November 2008 and August 2012 respectively, after a lengthy due diligence process in conjunction with KRS’ real estate consultant, ORG. The fees being paid to Walton Street are very consistent with industry fees in general. A chart showing the maximum fees KRS pays to its investment manager can be found on the KRS website at https://kyret.ky.gov/investments/Documents/Managers%20fees.pdf. Investments in real estate funds such as Walton Street are consistent with KRS’ portfolio diversification strategy.