Preqin examined the ﬁnancial statements of over 150 public pension funds from North America, Europe and the UK to ascertain how well their investments across various asset classes were performing. Private equity and ﬁxed income are the only investment types to have generated positive horizon returns across the one-, three-, ﬁve- and ten-year periods as of Q2 2010; other asset classes fall into the red for at least of one the periods.
According to the report, pension funds aren’t really interested in infrastructure funds. Only 4% of pension funds like to invest in infrastructure related assets. Top managers in this field are Alinda Capital Partners, Energy Capital Partners, ArcLight Capital, Carlyle Group, Global Infrastructure Partners, and Macquarie Infrastructure.
Pension funds’ most popular investments are real estate. The top managers in this field are Pramerica Real Estate Investors and JP Morgan Asset Management. More than half of the pension funds are invested in Pramerica.
Private Equity is the second most popular area. Fourty percent of pension funds are invested in Blackstone Group and Oaktree Capital Management. About thirty percent of the pension funds prefer TA Associates, Hellman & Friedman, and HarbourVest Partners.
Finally, about 13% of pension funds invest in Ray Dalio’s Bridgewater. The other popular hedge funds are K2 Advisors, Grosvenor Capital, Pacific Alternative Asset Management, GAM, and Blackrock Proprietary Alpha Strategies.