Home > News > Asset Allocation > New York State Pension Cashes Out of $2.1B Public Equity Fund
Asset Allocation

New York State Pension Cashes Out of $2.1B Public Equity Fund

The $254.1 billion pension giant also committed nearly $1 billion in July to a pair of investments within its credit portfolio.

By Michael Katz




The New York State Common Retirement fund cashed out its $2.1 billion investment in the Templeton Global Equity Fund in July, while committing nearly $1 billion to two investments within its credit portfolio, according to its latest monthly investment report.

The termination of the Templeton fund is part of an ongoing shift by the $254.1 billion pension giant away from public equities. During the course of 2022, the NYSCRF reduced its public equities allocation by nearly eight percentage points while increasing its allocation to real estate and real assets by nearly five percentage points.

Within its credit portfolio, the pension fund committed $600 million to the ICG Excelsior SCSp, managed by Intermediate Capital Group. The NYSCRF said the commitment is intended to add to the strategic equity strategy specializing in general partner-led liquidity transactions.

The pension fund also earmarked $250 million with its credit portfolio to KSL Capital Partners’ Tactical Opportunities Fund II, a commingled account that focuses on credit, debt securities and equity and equity-linked securities.

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Under its private equity portfolio, the pension fund allocated 360 million euros ($385.3 million) to the CVC Capital Partner IX fund, managed by CVC Capital Partners, which will seek investments in the health care, consumer, industrial, sports, financial services and technology sectors in Europe and the Americas.

The pension fund committed another $300 million within its opportunistic absolute return strategies portfolio to the H.I.G. Middle Market LBO. Fund IV managed by HIG. Capital. The fund is a commingled account targeting control equity investments in middle-market companies located primarily in the U.S. H.I.G. Capital is a new relationship for the NYSCRF.

As part of its emerging manager program, the pension fund committed up to $10 million to the Brasa Real Estate Fund III fund managed by Brasa Capital through the Empire GCM RE Anchor Fund. The NYSCRF’s emerging manager program was established to invest in newer, smaller and diverse investment management firms.

The pension fund also allocated more than $2.7 million within its real estate portfolio for the Albany Clinton Redevelopment, a construction and permanent loan for gut rehabilitation of nine buildings consisting of 40 residential units and two vacant parcels in the state’s capital.


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Home > News > Asset Allocation > Los Angeles County Pension Fund Returns 6.4% in Fiscal Year 2023
Asset Allocation

Los Angeles County Pension Fund Returns 6.4% in Fiscal Year 2023

LACERA outperformed its benchmark by 140 basis points to raise its portfolio’s asset value to $73.6 billion.

By Michael Katz



The Los Angeles County Employees Retirement Association reported a net return of 6.4% for the fiscal year that ended June 30, beating its benchmark’s 5.0% return and raising its total market value to approximately $73.57 billion from $70.41 billion one year earlier.

The pension fund reported three-, five- and 10-year annualized returns of 10.1%, 7.6% and 8.1%, respectively, outperforming its benchmark’s returns of 7.2%, 6.5% and 7.3%, respectively, over the same time periods.

As of the end of June, the pension fund’s asset allocation was 53% growth, 19% risk reduction and mitigation, 16% real assets and inflation hedges, 11% credit and 1% overlays and hedges.

LACERA’s returns were buoyed by its growth assets, which returned 10.2% and topped its benchmark’s 8.0% return. Meanwhile, its credit investments returned 7.7% for the year, outperforming the benchmark’s return of 6.0%.

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Real assets and inflation hedges returned just 0.1% but still came out ahead of the benchmark, which lost 0.6% during the year, while risk reduction and mitigation assets lost 0.2%, falling short of the benchmark, which broke even. Overlays and hedges investments returned 51.6% for the year but account for less than 1% of the overall portfolio.

“The last 12 months have been marked by significant volatility in capital markets, geopolitical issues, and policy shifts,” LACERA CIO Jonathan Grabel wrote in a newsletter to the pension fund’s retired members. “The ramifications of increasing interest rates reverberated through the financial systems. However, the first half of calendar year 2023 saw the steady increase in both equity and fixed income markets, further adding to the fund’s positive performance.”

 

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No More Limos for LACERA Board’s Travels

 

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