Every November, PERE unveils its ranking of the top 50 global institutional investors, but this year we are taking a step further and revealing the 10 investors that have placed just below the main list.
The threshold between placing in the top 50 and falling short of the list is thin – just $225 million divides the investor occupying last place in the GI 50, Korea Investment Corporation, and PFA Pension, ranked in position 51. What’s more is that £1.3 billion divides the investor placed in spot 50 from spot 60 (Samsung Life Insurance).
Consistent with previous years’ rankings, movement among the top 20 investors of the GI 50 is minimal, with nearly the same set of institutions appearing in the top places time and time again.
Looking at this from a regional breakdown, the delta among investors headquartered in North America, Europe and MENA is minor.
The greatest movement among investors takes place further down the ranking, and is even more notable with the 10 institutions that have fallen just below 50th place.
Notably, institutions further down the list allocate, on average, a smaller proportion of their portfolio to private real estate. For example, investors ranked one through 10 allocate 18.9 percent of their portfolio to the asset class. This is more than double the average allocation for institutions placed in spots 11 to 30 (9.2 percent). Investors ranked 50 through 60 also allocate less than 10 percent (9.5 percent) of their portfolio to private real estate.
Two of the institutional investors on this next-tier ranking featured in the top 50 last year: North Carolina State Treasury has dropped 10 positions from 44 in 2018 to 54 this year. The public pension fund’s allocation to sector fell from $8.6 billion to $8.0 billion in the last 12 months.
Meanwhile, Swiss private pension fund MPK Migros Pensionskasse, which allocates almost 32 percent of its portfolio to property, has moved down to 58 from 50 a year ago. This is in spite of an increase, albeit marginal, in its allocation from $7.6 billion in 2018 to $7.7 billion this year.