The Army & Air Force Exchange Service

The Army & Air Force Exchange Service

The Army & Air Force Exchange Service established its pension plan in 1946 to cover eligible civilian employees. The plan operates two components covering basic and supplemental benefits plus post-retirement medical liabilities. The pension fund targets an 11 percent allocation to private equity with current holdings in Portfolio Advisors Private Equity Fund IV, Fort Washington Private Equity Investors VI, and North Sky Private Equity Partners V. Real estate exposure includes a $1.111 billion direct portfolio split between core and value-added strategies plus a $370 million farmland and timber allocation. Geographic focus remains the United States with limited international real estate exposure through the Mesirow Real Estate International Partnership Fund. The fund reports 11 percent private equity deployment against a 9 percent target. It maintains memberships in the Pension Real Estate Association and Urban Land Institute. Service providers include Northern Trust as custodian and Aon as investment consultant. Governance separates investment decisions from the retail operations of the parent exchange service. The board chaired by Lt. Gen. Caroline Miller oversees policy while day-to-day management rests with the CIO.