New Jersey Division of Investment announced on Thursday $505 million in commitments to alternative and real estate investments for the New Jersey Pension Fund.
The division, a unit of the state Treasury Department, manages investments for the $73.3 billion pension fund. The commitments were announced at a meeting of the New Jersey State Investment Council, Trenton, by Christopher McDonough, acting director of the division.
The new commitments include $300 million to a partnership between the New Jersey pension fund and Siguler Guff, a New York-based private equity firm. The commitment is structured as a customized separate account that will focus on developing markets, according to a report prepared by the Division of Investment. The report said the commitment will help the New Jersey fund increase its exposure to markets in Latin America, Africa, and Central and Eastern Europe.
The division also announced a commitment of $100 million to Aether Real Assets III Fund and $30 million to Aether Real Assets Surplus Fund, both managed by Aether Investment Partners, Denver. Aether specializes in investing in oil and gas, mines and minerals, and timber and agriculture. This commitment will increase the pension fund's exposure to real assets, according to the division's report.
The division also made a $75 million commitment to GLP Logistics Fund I, a real estate fund that invests in warehouses in China. The fund is managed by Global Logistics Properties, based in Singapore.
Mr. McDonough also reported that the pension fund achieved an 11.97% investment return for the fiscal year ended June 30, 83 basis points above the fund's customized benchmark. The best performing assets categories were domestic equity and global REITs, he said.