TARGET: Burgis benchmark based on 5-year data + Liquidity
The target relates to unlisted investments and consists of a broad Burgis benchmark based on 5-year data (no restrictions, for example in terms of type of investment or geography), weighted by 10 % cash to reflect AP6’s situation as a closed-end fund.
This benchmark shows what a median fund in private equity with has returned during different time periods. Unlike a listed business, there is naturally a lag in information from the unlisted market. The main reason is the valuations that must be carried out in the funds and then the extensive registration work that must be carried out at the supplier of the return data. All return figures consist of the correct number of years and periods, but with a lag of about a quarter.
Unlike a traditional PE fund, AP6 can neither call upon nor distribute capital when the fund is closed. To deal with this difference, a liquidity buffer of about 10 percent must be available for short-term liquidity fluctuations.