Real Assets

HOW WE INVEST

Real Assets

The Real Assets team is responsible for global investments in real estate, infrastructure, timber and commodities through externally managed funds. The team works proactively through the selection and management of its external managers to reduce risk and increase long term returns.

Our real estate program originated in 1971. Today the portfolio is invested globally through over 100 externally managed funds. The real estate program invests in high quality managers that provide superior long-term risk adjusted returns while improving overall portfolio diversification. The allocation is 50 percent core “open ended” funds and 50 percent non-core “closed end” funds. The Fund’s core funds are diversified by geography and property type, and its non-core funds are diversified by vintage year, geography, property type and risk profile.

The Real Assets team also invests in externally managed infrastructure funds. Selection is based on moderate leverage, strong cash flow and a demonstrated record of realizations. Modest allocations to timber and commodities funds, invested on a global basis, are also part of the Real Assets portfolio.