Los Angeles Water and Power Employees Retirement Plan has approved a $175m (€150m) boost to its infrastructure and real estate portfolios, according to notes from a recent board meeting.
The public pension fund will invest $100m in the JP Morgan Infrastructure Investment Fund, drawing $85m from its retirement fund and $15m from the Retiree Health Benefits Fund.
JP Morgan Asset Management’s infrastructure fund has an open-ended structure and assets in the US and continental Europe. The fund invests in a combination of sectors, including renewable energy, water, natural gas, electric utilities and transportation.
In the board meeting notes seen by IPE Real Assets, LA Water and Power said the fund’s long-term ownership of essential infrastructure assets is expected to provide stable returns and a healthy income that maintains its resiliency as inflation rises.
In terms of real estate investments, the pension fund is to invest $75m into the Kayne Anderson Real Estate Partners VII fund.
The pension fund’s commitment formed part of the $5.1bn capital fundraising by the Kayne Anderson fund that completed in May this year.
The Kayne Anderson fund is set to focus on medical offices, senior/student housing and light industrial assets.
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