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Public funds boosting real assets commitments – eVestment

More U.S. public pension plans are favoring private equity and real assets as commitment activity increased in the second quarter, according to a survey from eVestment.

There were 85 and 68 commitments, respectively, to real assets and private equity funds in the second quarter. Coming in at a distant third was private debt at 29, followed by equities at 28; fixed income, hedge funds and multiasset strategies at 11 each; and private equity funds of funds, 2, according to the research company's Public Plan IQ database.

It is the fourth straight quarter that saw real assets and private equity funds lead the way. In the first quarter, they led with 70 and 67, respectively.

"U.S. public pension plans are continuing to place capital with real assets and private equity funds as they seek to diversify their portfolios and increase exposure to higher return and income-generating asset classes," said Graeme Faulds, eVestment's director of private markets solutions, in a news release. "The trend is clear for these asset classes: there is likely going to be continued flows of new money in that direction and managers need to be ready for it."