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2026-07-16 01:26:16
[German Sovereign Wealth Fund Plans to Increase Private Sector Allocation from 25% to 30%] German sovereign wealth fund Kenfo plans to increase its allocation to the private sector from 25% to 30% over the next two years, while reducing its exposure to private equity. According to its annual report, Kenfo expects to expand its real estate and infrastructure portfolio to achieve its target allocation. “We still see attractive returns in these markets,” said Verena Kempe, head of investment management at Kenfo. She also cautioned that a more prudent strategy is needed going forward due to the underperformance of private equity in recent years. Some investors have already reduced their investments in the private equity market due to rising interest rates and the challenges posed by artificial intelligence to software investments. Kenfo has also adjusted its stance on US Treasury bonds. The fund reduced its US Treasury holdings to approximately €200 million by the end of 2025 from €600 million a year earlier, before increasing them by more than €500 million by the end of June. Kenfo CEO Anya Mikus stated, "We have no plans to stop investing in government bonds, as they remain a very important part of the government bond market. Current yields can reach as high as 2.8%, exceeding the yields of many other sovereign bonds. We are adopting a flexible strategy."
