The USD 199 billion retirement system has increased its allocation to infrastructure via a USD 300 million investment in Alinda Infrastructure Fund II. The new commitment follows on from the investment CalPERs made in Alinda’s first infrastructure fund in 2007. Historically, the majority of CalPERs’ infrastructure investments have been in the US, but it has also invested in Asia and Europe focused funds. Going forwards, it views Asia and other emerging markets positively and plans for these to make up an increasing part of its portfolio. Industries which will be targeted include transportation, ports, energy, water, and communications.
The Alinda Infrastructure Fund II commitment is a further step towards the retirement system’s target of reaching an allocation to infrastructure of 3% of total assets by the end of 2010. This is lower than the average infrastructure target allocation of public pension funds, which currently stands at 4.5% of total assets. However, given the size of CalPERS’s assets under management, it ranks as one of the largest investors in the asset class.
For more information on institutional investors in infrastructure, please click here to learn more about Preqin’s Infrastructure Online service and the 2009 Preqin Infrastructure Review.