New York pension breaks private equity target allocation

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.