Los Angeles County Employees Retirement Association (LACERA) is to invest in infrastructure for the first time, creating a 3% allocation to the asset class.

The $56bn (€49.1bn) pension fund approved the decision along with creation of a 4% allocation to natural resources and commodities, according to a board meeting report.

Based on its current size, a 3% allocation would equate to $1.7bn.

LACERA will initially invest in liquid securities held through a separate account or through liquid fund structures.

The pension fund wants to establish a global portfolio that includes investments in natural gas, electricity, energy pipelines and storage, water industries, ports, airports, transportation companies, toll roads and communication infrastructure.

A search for fund managers is expected to start next month and conclude by February of next year.

A benchmark for the asset class has yet to be established.