The San Antonio Hearth & Police Pension Fund has dedicated $45m (£36.1m) to non-public debt as part of a plan to reallocate funding from underperforming rising markets fairness funds.
The $3.7bn pension fund’s board mentioned modifying its allocations at a gathering on 18 March 2024.
In keeping with minutes from the assembly, the board elected to remove its six per cent rising markets fairness coverage goal and enhance targets for US small/mid-cap fairness (two per cent), non-US developed fairness (one per cent), non-US developed small-cap fairness (two per cent), and personal fairness (one per cent).
Learn extra: US pension fund Calpers to spice up non-public debt publicity
The committee mentioned and agreed a re-up dedication of $20m with Boston-based HarbourVest Co-Funding Fund VII, which is able to deal with asset origination, risk-transfer and regulatory capital options, and market dislocation alternatives to ship present revenue and long-term capital appreciation.
The pension fund is presently invested in Funds V and VI. HarbourVest Co-Funding Fund V is a second quartile fund by way of inner charge of return (IRR). As of 30 September 2023, the pension fund’s investments in Fund V and Fund VI have IRRs of 20.79 per cent and seven.96 per cent, respectively.
Learn extra: Australian pension fund will increase non-public credit score publicity
The committee additionally voted to suggest to the board to commit $25m to New York-based 400 Capital Asset Based mostly Time period Fund IV, and this movement was carried unanimously.
The fund will deal with asset origination, risk-transfer and regulatory capital options, and market dislocation alternatives to ship present revenue and long-term capital appreciation.
The pension fund is presently invested in Fund III, which has an IRR of 11 per cent as of 31 December 2023.
The committee voted to suggest the termination of the fund’s two rising markets fairness managers, Constancy Institutional Asset Administration Concentrated Rising Markets Fund and the WCM Centered Rising Markets Fund and reallocate $140m of the proceeds amongst six present managers.
Learn extra: Natick pension fund to allocate $20m to direct lending funds
