Ohio Police and Fire makes $100m infrastructure debut

The $15.1bn pension is broadening a portfolio focused on timber to include infrastructure and agriculture.

The board of trustees for Ohio Police and Fire Pension Fund has approved its first investment in an infrastructure vehicle, committing up to $100 million to IFM Investor’s open-ended Global Infrastructure Fund.

The pledge is part of the pension’s move to broaden its timber-only portfolio to include infrastructure and agriculture. OP&F is combining the asset classes under a real assets group, which is targeting 5 percent of its total $15.1 billion portfolio. Infrastructure is set to make up 40 to 70 percent of its real assets portfolio.

Currently, OP&F’s real assets commitments include $300 million to timber. Along with its inaugural investment in infrastructure, the pension made its first pledge to an agriculture fund, committing $50 million to Agricultural Capital Management Fund II.

“Broadening the timber space to include infrastructure and agriculture should allow for more diversification, better risk-adjusted returns and an improved ability to implement the mandate,” an OP&F spokesman told Infrastructure Investor. “It became difficult to identify acceptable timber opportunities that would allow OP&F to reach the five percent target.”

IFM’s Global Infrastructure Fund invests in core and core-plus infrastructure assets diversified by sector and geography. The listed vehicle was launched in 2004 and now manages over $10.65 billion in commitments, according to Infrastructure Investor data.

Melbourne-based IFM, 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.