Returns, resilience and reinvention: What private markets’ top brass are worried about

David Rubenstein. Photo: SuperReturn

Artificial intelligence is no longer a portfolio
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LACERA braces for lower expected returns across portfolio ahead of SAA review

LACERA braces for lower expected returns across portfolio ahead of SAA review

The $94 billion LACERA has been warned that expected returns across major asset classes in its portfolio will shrink over the long-term as it gears up for an asset allocation review in 2027. In a recent board meeting, chief investment officer Jonathan Grabel highlighted several investment dynamics the fund is keeping an eye on.

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CalPERS, NY pensions challenge SpaceX’s ‘unfireable’ CEO provision ahead of mammoth IPO

Three of the largest US pension funds, managing a combined $1 trillion in assets, have demanded a meeting with SpaceX executives ahead of its speculated blockbuster IPO warning that its proposed corporate plan could be “the most management-favourable governance structure ever brought to the US public markets”.

Falling dollar dents Canadian pension returns; triggers hedging rethink

A weakening US dollar has eaten into the returns of Canada’s largest pension funds as annual reports revealed the currency shock forced a fundamental rethink from some investors around hedging practices. OMERS has pivoted from a policy hedging target to a more flexible approach fulfilling multiple objectives, while OTPP more than halved its US dollar exposure in 2025.

NBIM lays out case for real estate turnaround

Norge Bank Investment Management chief executive Nicolai Tangen conceded the $2.1 trillion fund is “not satisfied” with the performance of its real estate portfolio, as weakness in the asset class was a main contributor to three consecutive years of negative relative returns. All eyes are now on whether its overhauled strategy, which includes new structures and sector composition, can turn things around.

Dutch transition: APG leans into data, IT and communication

APG has successfully shifted its smaller pension fund clients to the new defined contribution pension system and now begins the huge task of moving the giant ABP as well. The defined contribution system has many implications including shedding more than 1000 staff at APG and moving investments more into riskier assets.

AP2: SEC ‘no-action’ rollback could send more shareholder proposals to vote

AP2 has voiced its concerns around what impact the shift in US shareholder proposal exclusions, or the so-called “no-action letter” change, will bring to sustainability-conscious investors, as the Swedish buffer fund gears up for a busy year of engagement in 2026.

Canada to allow retail contribution to new SWF

Canada has established its first national-level sovereign wealth fund with a seed of C$25 billion ($18.3 billion) to underwrite “nation-building” projects like ports, mines and energy infrastructure. In an unusual funding mechanism, the fund will issue a retail product that will allow individual investors to invest with the SWF and “participate in Canada’s growth”.

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