Investment Allocations

‘Challenging execution’ at a time of heightened competition is pushing sovereigns toward real estate, a survey has found.

Concerns over market conditions are prompting investors to seek relative safety, but there are dangers in following the crowd, writes Private Debt Investor senior editor Andy Thomson.

The $9bn pension, which is slightly overweight to private equity at 6.3% in actual allocation, plans to commit $1.8bn for the fiscal year ending 30 June 2018.

The $207bn pension fund is proposing the addition of two new sub asset classes in its private equity portfolio.

The $138bn pension fund sees high valuations in private equity as a continued challenge.

The sovereign wealth fund is keeping its private equity commitment plan for fiscal year 2018 mostly unchanged, but it will increase its capacity to co-invest.

Individuals in the US have increased their exposure to private equity between Q3 2015 and Q3 2016 more than other types of investors.

Once Meketa begins its 5-year contract in July, it will prepare to review Connecticut’s asset allocation, which currently includes an 11% target allocation to private equity.

The $320bn pension, which allocates 8% to private equity, spent less year-on-year in management fees in 2015 and less than its peers.

The new benchmark would still apply if private equity, which represents 8% of total assets, is combined with public equity as recently suggested by CalPERS.