(Bloomberg) -- Corebridge Financial Inc. Chief Executive Officer Kevin Hogan said he expects the firm’s $5.5 billion alternative investment portfolio to generate longer-term gains of 8% to 9%, despite falling short of that target in recent quarters.
The firm said that portfolio returned roughly 4% annualized in the second quarter, and Hogan expects similar performance this quarter, he said Tuesday at the Barclays Global Financial Services Conference in New York.
“We’re seeing trends similar to the second quarter, and we expect alternative returns to be in the same dollar ZIP code,” he said.
In the second half of the year, losses from the firm’s small portfolio of hedge fund investments could offset stronger performance in its real estate portfolio, according to Hogan.
Private equity represents about 75% of Corebridge’s total alternative investment portfolio, while 25% is invested real estate equity, Hogan said. Corebridge’s alternative portfolio has generated about 14% over the past five years, according to the CEO.
Pressure on the US office sector is weighing on the firm’s related commercial mortgage loan portfolio, which represents 2% of its invested assets, he said.
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