The California Public Employees’ Retirement System is planning to grow its infrastructure portfolio by $5 billion in the next three years, increasing the program from $1.8 billion to $6.7 billion by fiscal year 2016-17, according to documents prepared for the retirement system’s November board meeting.
CalPERS infrastructure portfolio returned 22.8 percent for the year ended June 30, 2014, beating its benchmark, the Consumer Price Index plus 4 percent lagged one quarter, by 17.2 percentage points. The program has
had an even-greater five-year return, 23.3 percent, beating its benchmark by 6.7 percentage points.
During the past year, CalPERS made $682 million in infrastructure commitments and launched its first nondiscretionary infrastructure separate account, a mode of investment that, along with direct investment, the $300 billion pension fund is looking to expand in the coming years.
CalPERS is looking to invest more than $700 millio