Ohio Police & Fire Pension Fund is expected to invest heavily in infrastructure next year as it allocates up to $485m (€413m) to new real assets investments.
The pension fund confirmed to IPE Real Assets that it will invest up to $320m in infrastructure.
Under the advice of The Townsend Group, it will invest up to $160m in core real assets and up to $160m in non-core real assets.
Ohio Police & Fire’s real assets allocation includes agriculture and timber (real estate is treated as a separate allocation), but most of the investment is expected to be directed to infrastructure.
All investments will be made through funds and will predominantly focused on US assets.
Ohio Police & Fire will also make up to $165m of new invesmtents in real estate.
It will target tactical or non-core real estate strategies, because its $1.7b real estate portfolio is already fully weighted to core investments.
Ohio Police & Fire make commitments of between $50m and $70m to real estate funds.
The $15.6bn pension fund has target allocations of 8% and 12% to real assets and real estate, respectively.
It is below both targets. As of the end of November, the pension fund had 2% in real assets and 11% in real estate.