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Two Texan Retirement Systems announce infrastructure investment plans

by Richard Stus

  • 11 May 2010
  • INF

The USD 19.8 billion Employees' Retirement System of Texas will invest in unlisted infrastructure funds through its 8% allocation to real estate. The retirement system is setting a target of committing 5% of the real estate allocation to infrastructure whilst permitting a range of 0-10%. Investments could include equity and debt strategies, in vehicles targeting both greenfield and brownfield project stages. The pension plan is open to investment in a diverse range of industries, including transportation, utilities, telecom, natural resources and social sectors. Any infrastructure investments made through this allocation would be in addition to and in conjunction with those made through its private equity portfolio.

 

In addition, Teacher Retirement System of Texas recently announced it plans to make new commitments to unlisted infrastructure funds in the next 12 months as it seeks to fulfil its 15% target allocation to real assets. The retirement system already has unlisted infrastructure fund investments in its investment portfolio, the most recent of which was a commitment to First Reserve Energy Infrastructure Fund in Q4 2009. The funds provide exposure to European, North American and emerging market infrastructure assets from across the project-stage spectrum. The pension fund targets an array of economic infrastructure assets in the transport, utilities, telecommunications, energy and renewable energy sectors. Fund of funds are not a strategy the retirement system will use, but co-investment opportunities will be considered.

More information on retirement systems and other infrastructure investors can be found on Preqin's Infrastructure Online database.

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