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Tuesday, September 11, 2007
CalPERS allocates up to $2.5B in new asset class that includes infrastructure San Francisco Business TimesThe California Public Employees' Retirement System sees big investment opportunities in the construction of roads, bridges, airports, utilities, water systems and similar projects. The nation's largest public pension fund plans to allocate up to $2.5 billion into an inflation-linked new asset class that will include the pilot infrastructure program as well as investments in commodities, inflation-linked bonds and timber. CalPERS, with $245 billion in assets, will reclassify $573 million of existing investments from private equity, real estate and fixed-income and place them in the provisional new asset class. Currently, CalPERS has about $450 million in commodities and $123 million in timberland, inflation-linked bonds and infrastructure investments. Those assets will be shifted soon into the pilot inflation-linked asset class. "We hope to generate stable, attractive investment returns with low to moderate risk as we deploy capital to meet a reported need of $1.6 trillion for U.S. infrastructure projects over the next five years," said Rob Feckner, CalPERS board president.
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