Investors

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.

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 $2.7bn Fresno County Employees’ Retirement Association has increased its exposure to private equity and real estate while launching a new ‘real asset’ allocation, which includes infrastructure.

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.

The $2.7bn Fresno County Employees’ Retirement Association has increased its exposure to real estate and private equity while launching a new ‘real asset’ allocation, which includes infrastructure.

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 second largest securities brokerage in Japan is putting plans in place to expand its real estate business and launch a private equity fund, according to media reports.

The $16.1bn pension is also set to commit $75m to Falcon Investment Advisors, a middle market focused mezzanine firm.

The Teachers’ Retirement System is reviewing its real estate allocations for the next five years as part of an annual review of commitments. The pension fund will also focus more effort on emerging managers.