US - New Jersey's pension funds have gained 15% this fiscal year as stocks rose, according to a report presented to the State Investment Council.
Assets as of February. 28 were $72.6bn, a $1.8bn increase since December 31, according to a memo to the council from Timothy Walsh, director of the state Treasury Department's investment division. The state's fiscal year began on July 1.
Domestic equities were the best-performing segment, returning 32.3% from June 30 to February 28, compared with 31.2% for the Standard & Poor's 1500 Index, according to the memo.
As of February 28, about $35bn, or 48%, of the fund's assets were in public equity. The funds had about $10.8bn, or 15%, in alternative investments, which include private equity, real estate and hedge funds. The division has proposed raising the maximum share of holdings that can be placed in alternatives to 38% from 28% to help boost returns.
Walsh's group manages investments for seven pension funds that provide benefits to about 800,000 working and retired teachers, police officers and government employees.
In private equity, it seeks to put $100m in Centerbridge Capital Partners II, which invests in financially distressed companies, and $100m in mezzanine fund Newstone Capital Partners II. In hedge funds, the division plans to invest $100m in Daniel Loeb's Third Point Partners and $200m in Reservoir Strategic Partners Fund.
It also wants to double its $100m investment in William Ackman's Pershing Square and add $200m to its $300m commitment to Daniel Och's Och-Ziff Structured Credit.
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