Alameda County Employees’ Retirement Association (ACERA) is increasing its commitment to infrastructure as it cuts its fossil fuel holdings within its real assets portfolio.
In a meeting document, the pension fund said it has approved a $40m (€35.1m) commitment to the Brookfield Super-Core Infrastructure Partners, an open-ended global fund which targets energy, power, utilities and transportation assets.
Verus, the $7.4bn pension fund’s investment consultant, said it wanted ACERA to increase the allocation to infrastructure investments within its $359.6m real assets portfolio at the expense of natural resources strategies as it moves away from investments in the oil and gas industry. ACERA’s real assets portfolio can include precious metals and agricultural commodities like wheat and coffee.
The real assets portfolio has a since inception internal rate of return of -3.94%, a performance Verus said has been driven primarily by the large weighting in commodity futures and from earlier investments in energy.
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