Real Assets
Institutional commitments to private infrastructure funds increased in the second quarter given attractive characteristics—like providing an inflation hedge or cash yield—and product offerings that have gained steam in recent years, a trend that will likely continue into the second half of 2023 and beyond.
The plan will invest a total of $35 million with two farmland funds.
The plan’s new private markets allocation will consist of one-third private equity, one-third private debt and one-third real estate/real assets.
Plan bolstered its private equity and private infrastructure allocations with commitments to two existing manager relationships.
The plan also made an infrastructure commitment at a board meeting today.
The search will have a focus on the large-cap market segment.
The pension plan is looking for global infrastructure managers to handle approximately $20 million after approving the search in the first quarter.
The plan added $90 million across two commitments in the second quarter.
The plan will issue an RFP for ACWI ex-U.S. managers in the coming weeks.
The plans placed Wellington Management Company on watch this week due to the upcoming retirement of a partner and equity research analyst.