Reports Blog

May 2024 Public Pension Brief

Written by John Washington, Data Research Analyst | Jun 5, 2024 2:00:00 PM

Highlights From May:

  • Over $13 billion in new commitments across asset classes, including CalSTRS, NYSTRS, and WSIB, showcasing strong continued deployment by major pensions.

  • Emerging markets under pressure: Several plans reduced or eliminated EM allocations, favoring U.S. small-cap and developed international equity.

  • Private equity dominates: Numerous buyout and co-investment mandates were approved, including $750M in pacing from ERS Texas and major allocations by Connecticut and Massachusetts PRIM.

  • Major real estate reallocations: LACERS and LACERA approved detailed pacing plans targeting core, value-add, and opportunistic strategies, while CalSTRS adjusted RE weightings.

  • Infrastructure remains hot: Commitments to funds like KKR Global Infrastructure V, Partners Group, and SDC Capital highlight continued institutional interest.

  • Private credit momentum grows with mezzanine, distressed, and direct lending strategies receiving substantial allocations from Florida SBA, OPERS, and Connecticut.

  • Staff and consultant updates: Several systems, including CalSTRS and Teacher Retirement System of Texas, announced leadership changes in CIO and deputy roles.

  • Manager terminations and RFPs signal movement: Multiple RFPs launched for consultants and asset managers, with over a dozen manager changes tracked.