CalPERS plans to invest $900 million in infrastructure funds and another $400 million in direct infrastructure investments this year, the investment committee of the $202.1 billion system was told today.
The California Public Employees' Retirement System's infrastructure program was originally approved as part of a 5% allocation in inflation-linked asset class investments in December 2007, but so far, only $220 million has been invested in infrastructure, according to a letter from infrastructure consultant Meketa Investment Group to the investment committee.
Currently, $4.84 billion is allocated by the Sacramento-based system to ILAC investments, which includes commodities, timber and inflation-linked bonds as well as infrastructure.
Meketa said the sluggish pace of commitments was due to internal resource constraints, a highly selective process for evaluating offerings by staff, and a general slowdown in infrastructure fundraising during the year. However, significant progress was made in 2009 in developing the internal process for future investments.
Meketa was hired as infrastructure consultant last year.
Separately, the investment committee approved recommendations to begin negotiations with 58 companies in which CalPERS invests that do not choose new board members by majority vote of shareholders. Among the companies are BlackRock, TD Ameritrade, Coca-Cola Enterprises, Comcast, Intuit, Sears Holding, United Parcel Service, Vornado Realty Trust and Wynn Resorts Ltd.