Pennsylvania State Employees’ Retirement System, Harrisburg, committed up to $50 million to Primavera Capital Fund II, a private equity buyout fund focused on growth equity and control-oriented investments in China managed by Primavera Capital Group.
It was revealed at its board meeting on Tuesday that PennSERS’ investments generated $1.7 billion net of fees in 2014, said Pamela Hile, spokeswoman for the $27 billion pension fund. The plan’s portfolio returned 0.3% for the fourth quarter, and 6.4% for the calendar year.
For the year, alternatives returned 13.1%; hedge funds, 6.7%; real assets, 6.3%; fixed income, 6.1%; global equities, 3.3%; and cash reserves, 0.5%.
Net of fees, PennSERS’ portfolio returned an annualized 10.6% for the three years ended Dec. 31, 9.2% for five years and 6.6% for 10 years. Ms. Hile did not provide benchmark information at press time.