The $72.3bn US pension joins a raft of North American funds recording losses for the year to June 30. Once again real estate was the best performing asset class returning 8.74%, followed by fixed income and private equity.
The US’s largest pension fund is to increase its infrastructure allocation to 3 percent, or $8.3 billion, over the next two years.
A report by PCA to the $234bn California pension fund has highlighted China and India as the most attractive emerging markets in which to invest. The pension will next week consider backing calls to allocate significantly more capital to emerging markets over the next decade.
CVC Capital Partners’ latest buyout fund leads the pack with a €500m commitment from the public pension giant.
The $234.2bn pension is mulling a possible change to its private equity allocation, as the twin forces of sinking assets under management and shrinking distributions have combined for an overweighted alternatives exposure.
The $127bn pension fund saw its real estate investments return just 8.7% in the year to June 30, 2008 – against a benchmark of more than 10%. Despite its underperformance, real estate remained the strongest asset class for the pension during turbulent market conditions.
Fortress' and Blackstone’s second quarter earnings results offer a glimpse into how firms are responding to a slowing fundraising pace, writes Matt Levin.
The fund of funds is actively focusing on real estate in Asia as it plans to boost its investments in unlisted real estate funds generally. The firm will also raise new Asia property funds. According to new Asia Pacific head, Martin Lamb, the next 10 years will be the “decade of investing in Asia."
The real estate arm of the US pension fund and asset manager is targeting commercial real estate opportunities in the UK and Europe with its first international office. Former Invesco retail executive Paul Wilson will lead the effort.
The European mid-market firm has turned its attention to Central and Eastern Europe with the secondary buyout of a Polish manufacturer of rail freight buffers from Advent. The region is becoming a private equity hotspot, but IK will be proceeding with care.