The $12.7 billion School Employees Retirement System of Ohio has committed $50 million to AMP Capital Global Infrastructure Fund, managed by AMP Capital Investors.
It is the pension fund’s first commitment to a fund managed by AMP Capital Investors and falls within the pension fund’s global real assets allocation. The pension fund’s target to global real assets is 15 percent, a recent increase from its previous target allocation to the asset class, with an actual allocation of 15.6 percent as of June 30.
AMP Capital’ closed-end, value-added fund focuses on global investments in infrastructure, mainly in Europe and the United States.
Ohio SERS uses its real estate portfolio to provide a stable income return from tangible assets, to be a partial inflation hedge over the long term and to provide low correlation to equities. The pension fund plans to improve the risk/return characteristics of the global real assets portfolio, reduce fees and realign manager lineup as needed.
During the 2015 fiscal year, Ohio SERS committed $55 million to an urban neighborhood apartment fund, invested €40 million ($45 million) with a European real estate fund and had one infrastructure fund under due diligence. Real assets investments will remain a goal for fiscal year 2017, with the system’s research focus on timberland and farmland.