The New York State Common Retirement Fund’s (CRF) commitments to private equity hit 8.3 percent of total assets as of 31 March, in excess of the pension’s 8 percent target.
The $153 billion (€110 billion) state pension had $12.7 billion in capital committed to private equity at the time, according to CRF’s annual report for the fiscal year ended 31 March.
CRF’s private equity portfolio generated a 24.8 percent one-year return while overall the pension returned 2.6 percent on its investments.
The pension recorded $29.5 million in expensed private equity management fees and $112.5 million in capitalised private equity management fees.
The pension’s second major alternative asset class, real estate, returned 14.75 percent for the year. Real estate investments totaling $8.9 billion represented 5.8 percent of total assets. CRF’s target allocation to real estate is 6 percent.
The New York public pension is currently limited to investing no more than 25 percent of its total portfolio in alternative asset classes and plans to launch a strategic asset allocation review in 2009.