Illinois Teachers’ outlines FY2021 infrastructure plan

The US public pension has indicated how it intends to meet its infrastructure portfolio pacing plan.

Institution: Teachers’ Retirement System of the State of Illinois
Headquarters: Springfield, United States
AUM: $52.92 billion
Allocation to infrastructure: 0.4%

Teachers’ Retirement System of the State of Illinois set out a FY2021 tactical infrastructure portfolio plan at its August 2020 investment committee, a contact at the pension informed Infrastructure Investor.

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Highlights from Illinois Teachers’ August 2020 investment committee meeting:

  • Committed $200 million to Macquarie Infrastructure Partners V and $250 million to Stonepeak Infrastructure Partners IV.
  • Made a $25 million top-up commitment to Taurus Mining Finance II, having originally committed $100 million to the fund in June 2019.
  • Confirmed a target allocation range to infrastructure of 0 to 5 percent.
  • Affirmed commitment to building out infrastructure portfolio in order to pursue greater portfolio diversification, income stability and steady risk-adjusted returns.
  • Outlined $480 million in capital deployment for the real assets portfolio in FY2021 to drive allocation towards the real asset class’s long-term 4 percent target.

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Illinois Teachers’ current allocation to infrastructure stands at 0.4 percent of its total assets under management – around $230 million. The pension’s target allocation for its real assets portfolio, of which infrastructure is the largest sub-asset class, is 4 percent of total assets (around $2.1 billion). Since the turn of the year, the pension has made five commitments to infrastructure funds altogether totalling $925 million.

Stan Rupnik is Illinois Teachers’ chief investment officer and acting executive director. He has been with the pension since April 2003. Makayla Baker and Shelja Aggarwal are both senior investment analysts within Illinois Teachers’ alternatives division. Both have been with the pension since 2018.

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