Mississippi Public Employees Retirement System (PERS) is considering investing in infrastructure for the first time with an initial plan to allocate up to $660m (€655m) to the asset class.
The $33bn pension fund said in a meeting document that it could allocate 1% to 2% of its total assets as an initial allocation.
The yet-to-be finalised allocation is expected to be funded by reducing the allocation to public equities.
According to the meeting document, the pension fund’s investment consultant Callan is overseeing an asset allocation review, with a final decision expected later this year.
Mississippi PERS also disclosed in the meeting document that it is redeeming $100m from its $1.02bn investment in the Principal US Property Account, a move it said will help rebalance a portion of the pension fund’s real estate portfolio as well as make cash available to pay beneficiaries.
The Principal US Property Account has a total net asset value of $13.3bn.
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