The UNJSPF’s Alternative Investments team is responsible for investments in Private Equity and Commodities through externally managed funds.
The Fund’s Private Equity program originated in June 2010. Its charter is to build a Private Equity portfolio by identifying and investing in top-tier managers that provide superior long-term risk adjusted returns while improving overall portfolio diversification. The Fund’s Private Equity program currently consists of a select number of externally managed funds diversified by vintage year, private equity sub-sectors and geography. The performance benchmarks for the private equity portfolio are the MSCI ACWI Index plus 200 basis points and the Private iQ benchmark.
The Fund holds a modest allocation to commodities via externally managed commodities funds. The performance benchmark for the commodities portfolio is the Bloomberg Commodity Index Total Return (BCOMTR). The Fund’s commodities allocation provides an effective means of hedging against inflation risk.
The Alternative Investment team works closely with the Risk, Compliance and Legal groups to ensure conformity with risk corridors and Investment Policy considerations.