Employees Retirement System (ERS) of Texas is planning to invest $400m (€364.8m) in non-US infrastructure assets during the 2021 fiscal year to help diversify its portfolio.
Consultant CBRE Caledon said in a meeting document that the pension fund’s $1bn infrastructure portfolio is weighted to assets in the US and in the renewable power sector.
For the 2021 fiscal year beginning in September, the investment consultant recommends diversifying the portfolio by investing in core and non-core assets beyond the US.
CBRE Caledon said it wants ERS of Texas to consider adding both a core and a non-US focused manager in fiscal 2021.
The pension fund’s existing portfolio is currently at the lower end of the target range for core assets and it expects to invest in core assets that are located in Europe, Canada or Australia.
ERS of Texas also expects to hire at least one emerging market-focused infrastructure manager.
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