PSERS approves $300m commitment

Institution: Pennsylvania Public School Employees’ Retirement System
Headquarters: Harrisburg, US
AUM: $72.5 billion
Allocation to alternatives: 33.2%

Pennsylvania Public School Employees’ Retirement System has approved a $300 million commitment to Brookfield Global Transition Fund, according to a press release issued by the organisation.

Brookfield Asset Management launched the vehicle in February 2021 with a hard-cap of $12.5 million, holding an initial $7 billion closing in July 2021.

BGTF is the largest vehicle focused on the global transition to a net-zero economy. The fund will build on Brookfield’s leadership in renewable power and deep operating capabilities to scale clean energy and invest capital to catalyse the transformation of carbon-intensive businesses to achieve Paris alignment.

Brookfield placed third in this year’s II 100, Infrastructure Investor‘s ranking of the asset class’s top global fund managers.

PSERS currently allocates $652.5 million to infrastructure investments, comprising 0.9 percent of its total investment portfolio. The $72.5 billion public pension has a target allocation to infrastructure of 4 percent.

As illustrated below, PSERS’ recent infrastructure commitments have primarily been to energy and renewables-focused vehicles that invest globally.

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