Allocation Strategy

CalPERS’ desire to meet its new increased real estate allocation target by next July illustrates the pressures facing anyone looking to put a large amount of capital to work  

The world’s largest pension fund has set up an alternatives unit and is now focused on private equity.

The updated pacing plan, which will be presented at the investment committee’s April 14 meeting, reveals that the largest US pension plan could deploy as much as $5.7 billion in the asset class in just over one year.

The $50.4 billion pension plan has made follow-on commitments to two existing opportunistic managers, as well as to its in-house real estate co-investment and secondaries program.

Investors in Asian property have become polarized on opposite ends of the risk spectrum as their commitments grow, according to the world’s largest property services firm.

The $143.7 billion pension plan is projected to invest more than $1 billion in real estate each year for the next four years.

The San Diego city pension has made two new commitments totaling $70 million to Carlyle Realty Partners VII and CBRE Strategic Partners US Value VII.

The $10.2 billion pension is on the hunt for an industrial-focused noncore real estate manager to oversee up to $50 million.

  Graeme Torre, Asia-Pacific managing director at Invesco Real Estate, suggests that investors will drive demand for more core vehicles this year rather than traditional opportunistic funds.  

The $176.96 billion pension plan is lining up sizable investments in non-core domestic and international funds this calendar year, including a $75 million pledge to Tristan Capital.