Employees Retirement System (ERS) of Texas is planning to increase its exposure to core non-US infrastructure assets as part of the pension fund’s $450m (€368.4m) fiscal 2022 infrastructure pacing plan.
ERS of Texas said in a meeting document that for the fiscal 2022 year beginning in September, it also intends to increase the size of each commitment it makes during the period to help decrease the number of relationships it has with managers.
Part of the strategy during the period involves placing more capital into core funds or co-investments that target investments in regions like Europe and Australia. The pension fund also plans to hire an emerging markets manager to help further diversify its infrastructure portfolio.
The strategy is expected to help tilt the pension fund’s infrastructure portfolio which is currently geared towards the US and non-core strategies.
As of the end of March, ERS of Texas had a $1.2bn infrastructure portfolio, representing 3.8% of its total investment portfolio.
The pension fund’s long-term targeted allocation for infrastructure is 7%, a target ERS of Texas hopes to reach by the end of 2024.
The current infrastructure portfolio mainly comprises telecommunications, power, transportation/logistics and utility assets.
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