Black Enterprise – New Jersey’s state pension funds will allocate an additional $3.8 billion toward hedge funds from now until June 30, 2007, as part of a new investment plan adopted in July by theNew Jersey Division of Investment.
While $800 million in state pension fund assets were committed to hedge funds in fiscal 2006, the new year will see that allocation increase to $4.6 billion by the end of fiscal 2007, representingapproximately 6% of the pension funds’ $74 billion in total assets.
The annual plan, which began with the pension funds’ 2007 fiscal year on July 1, also increased commitments to the other asset classes in the fund’s alternatives portfolio. The allocation to privateequity funds will increase from $2.2 billion in 2006 to $4.1 billion in 2007, while the allocation to direct real estate will increase from $650 million to $1.75 billion.
