NEW YORK—U.S. public pension funds will likely have to switch to more aggressive investment strategies in the coming years to fill funding gaps despite assets held by sovereign investors having grown to record levels amid the 2021 equity market boom, a new report said. On average, the difference between assets and liabilities at U.S. public pension funds, known as the “funded ratio,” remains “unsatisfactory” at less than 75 percent, sovereign investor specialist Global SWF said in a report. To boost returns, many will likely have to focus on alternative assets, including private equity, and private credit, Diego Lopez at Global SWF told Reuters. “Certain pockets of real assets including logistics properties and infrastructure may also benefit from increased interest, and hedge funds will continue to be an important part of US [public pension funds’] portfolios.” Assets held by sovereign wealth and public pension funds globally rose to a record $31.9 …