California Public Employees Retirement System (CalPERS) has issued commitments worth $3.9bn (€3.4bn) in total to three of its infrastructure managers and plans to lift its real assets allocation in the next fiscal year from 13% to 15%.
The $496bn pension fund disclosed in a meeting document that it has approved a $2bn commitment to the Tower Bridge Infrastructure Partners, a partnership formed in 2019 with a $777.3m portfolio value as of June 2020.
The pension fund has approved a $1.5bn commitment into the $1.2bn Golden Reef Infrastructure Trust separate account relationship with QIC which targets assets in the Asia Pacific.
Golden Reef’s portfolio recorded a 10% net return for one year and 12.5% for three years.
QIC declined a request for comment.
The final infrastructure commitment was $402m into Gulf Pacific Power, a $1.5bn partnership with Harbert Management Corporation which invests in North American power assets.
The partnership has net returns of 9.5% for one year, 10% for three years and 9.2% for five years.
For the next fiscal year starting 1 July CalPERS intends to move its real assets portfolio from 13% to 15%.
The pension fund’s $48.5bn real assets portfolio comprises mainly of real estate, followed by infrastructure as well as a small exposure to forestland.
Theresa Taylor, chair of the investment committee for CalPERS, said: “The actions we have taken provide the framework for the long-term success of the CalPERS fund.
“The portfolio we selected incorporates a diverse mix of assets to help us achieve our investment target of 6.8%.”
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