By Muskan Arora
The $6.9
billion Colorado Fire and Police Pension Associates disclosed four new
commitments of $95 million and termination of three managers, amid the current
market landscape.
The system
committed to real assets, real estate and private capital managers, whereas
terminated global public equity and long short equity managers, as presented in
the June 12-14th board meeting documents.
New
Commitments
FPPA committed
$30 million to Arroyo Energy Investors Fund IV, an infrastructure fund focused
on energy and power generation assets in North America and Chile. Staff
approved $20 million to the Fund and $10 million reserved for co-investments to
its re-up.
The second
commitment of $25 million was made to Farallon Special Situations Fund III, an opportunistic
fund manager that invests globally across the capital structure in illiquid
special situations. Farallon has an existing relationship with the system.
Allocation
of $20 million each was made to the new managers: ArrowMark CRE Structured
Finance Fund, a real estate debt fund and lower-middle-market buyout fund of
funds Serve Capital Partners V.
The US economic
data and inflation commentary weighed in on the changes across the portfolio.
Within the commentary, real assets performance was considered mixed owing to a
stronger US dollar, higher bond yields, rebounding global growth, and
escalating tensions in the Middle East.
Terminations
The system
approved the termination of Select Equity Group’s Crosby Street strategy, and
the $190 million allocation will be put in the near-term to passive global
public equity portfolio.
The other
terminations included $41 million Jackson Square Partners’ small cap opportunities
strategy and $35 million Yiheng Capital Partners; a China focus long short
equity strategy.
While the
reason for these changes remains undisclosed, the CIO’s report highlighted
active public equity global strategies struggled to “keep pace with passive
benchmarks given their relative US underweight.”
The report
also spoke about the long short equities’ largest negative contributor came
from China exposure, otherwise, the portfolio outperformed its benchmark.
As of April 30, the system allocates 38.8% to global public equity against a target of 38%, 30.8% to private markets against a target of 31% and 6.9% to long short equity against a target of 6%.
