Global pension fund allocations to unlisted infrastructure have grown in recent years but Australian pension funds continue to lead the way when it comes to actual investments according to a report published by the Organisation for Economic Cooperation and Development (OECD), which also called for more help from governments in enhancing the investment environment.
SWFs eye private real estate funds
New research reveals many sovereign wealth funds (SWFs) have entered the private fund arena and more are planning to invest through private equity funds in the future. According to analysis from the 2009 Preqin Sovereign Wealth Fund Review, which contains investment plans for all SWFs active in the real estate sector, 13 per cent invest only on an indirect basis, while 26 per cent invest only in direct real estate.
Should hedge funds delay taking performance fees?
The US$173 billion California Public Employees’ Retirement System (CalPERS) is restructuring the relationships it has with its hedge fund managers and calling for fees to be based on long-term rather than short-term performance.
CalPERS said performance fees should be judged on a long-term basis, and mechanisms such as delayed realisations and clawbacks can better align long-term interests of managers and investors.
OMERS’ new co-investment entity gateway to private deals
The Ontario Municipal Employees Retirement System (OMERS) has created a new investment entity, called OMERS Strategic Investments, with a specific mandate to secure co-investment relationships with like-minded investors from around the world, and facilitate a move to its target of about 42 per cent of investments in private markets.
Beware of PE secondaries “rubbish” as dealflow rises, valuations drop
Investors in the private equity secondaries universe must be selective as more assets, including distressed assets, come to market and valuations seem set to head south.
US congress challenges Bernanke on bankers’ performance pay
Federal officials in the US, including Federal Reserve chairman, Ben Bernanke, will receive letters from Congress in the next couple of days requesting documents about their knowledge of performance bonuses paid to Merrill Lynch executives just weeks before federal money was allocated to the bank’s merger with Bank of America.
