Ohio pension hands IFM extra $60m to diversify real assets

The $15bn Ohio Police and Fire Pension said infra will comprise up to 70% of its newly rebranded real assets portfolio.

The Ohio Police and Fire Pension fund has increased its commitment to IFM Investor’s Global Infrastructure Fund by $60 million, according to notes from the pension’s board of trustees meeting in August.

The $15.1 billion pension now has $160 million invested in IFM’s $10 billion open-ended investment vehicle. OP&F first allocated $100 million in May as part of a move to diversify a $300 million timber-only portfolio to include infrastructure and agriculture.

The portfolio, rebranded as real assets, has an 8 percent target allocation and will invest between 40 percent and 70 percent of that target in infrastructure. Currently, real assets account for more than 2 percent of OP&F’s portfolio.

In June, OP&F said it had earmarked $80 million for the Meridiam North America Infrastructure III Fund.

When new commitments are added, OP&F’s real assets portfolio will be at around half of its target allocation – at 4 percent.

IFM’s Global Infrastructure Fund invests in core and core-plus infrastructure assets diversified by sector and geography. The Melbourne-based firm, which manages $27 billion in infrastructure for more than 190 institutional investors, opened its global fund to international investors in 2009. Most of its commitments are from institutional investors in the US, Canada, the UK and Australia.