The $7.3 billion (€5 billion) San Diego County Employees’ Retirement System has created a 5 percent allocation for infrastructure investment. The fund has already approved a $75 million allocation to Global Infrastructure Partners, a vehicle founded by Credit Suisse and General Electric.
The pension fund hopes to hire additional managers in the next six to twelve months, said investment officer Brian Johnson, seeking funds that invest in projects such as water systems, power plants, toll roads and airport construction and management
“We like the underlying economics behind the assets,” Johnson said. “There is no correlation with traditional market returns.”
The programme is similar to one the California Public Employees’ Retirement System unveiled in September, under which CalPERS has allocated $2.5 billion to infrastructure investments.
“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 US infrastructure projects over the next five years,” Rob Feckner, CalPERS board president, said of the programme in a statement.