CalPERS’ investment policy subcommittee on Aug. 18 will consider a new global real estate policy for the $227.7 billion system that could increase its exposure to emerging markets real estate.
The new policy, if ultimately approved by the system’s investment committee, would allow investments in emerging markets up to 20% of the California Public Employees’ Retirement System’s $23.6 billion real estate portfolio, according to a draft of the policy to be presented to the subcommittee. As of March 31, about 3.7% of its real estate portfolio was in emerging markets.
The policy would also allow up to 100% of the portfolio to be invested in developed markets and up to 5% in frontier markets. The new policy is a result of a September 2007 review of the real estate portfolio that called for increased exposure to overseas real estate.
The investment committee could consider the new policy at its Sept. 15 meeting, said spokesman Clark McKinley.
Separately, the pension fund invested about $1.72 billion with eight private equity firms in May and June, according to recently released information. In May, the Sacramento-based system invested $400 million in Ares Corporate Opportunities Fund III, $200 million with Asia Alternatives Capital Partners II, $75 million with Apollo European Principal Finance Fund and $50 million with Aberdare Ventures IV.
In June, CalPERS invested $736 million in CVC European Equity Partners V, $100 million in TPG Biotechnology Partners III, $85 million in Lime Rock Partners V and $75 million in Levine Leichtman Capital Partners IV.
