California Public Employees Retirement System (CalPERS) has revealed it will invest in two global infrastructure funds, just days after it announced a $500m (€373m) joint venture with UBS Global Asset Management.
CalPERS has approved a $300m commitment to Morgan Stanley Infrastructure Partners II and $250m to the UBS International Infrastructure Fund II.
The pension fund was unable to confirm whether the strategy of the UBS fund would differ from that of its ‘Golden State Matterhorn’ joint venture, which also has an international remit.
The three infrastructure commitments – all revealed in the same month – amount to €1.04bn (UBS is providing $15m of the joint venture’s total capital). As of April this year, CalPERS had $3.8bn in infrastructure and forestland investments, representing 1.3% of its $291m in total assets and below its target of 2%.
UBS is seeking to raise $2bn for its second global infrastructure fund, which would make it larger than its first fund which attracted $1.52bn in 2008.
The fund will invest in gas transmission, electricity, waste management, water and wind.
Morgan Stanley has raised capital for its second global infrastructure fund from some of the largest pension funds in the US. In June, it received a commitment of $250m from Teacher Retirement System of Texas along with an additional $100m for the fund’s co-investment platform.
UBS and Morgan Stanley declined to comment.