Texas Employees Retirement System, Austin, increased its private infrastructure annual tactical plan for fiscal year 2021 to a total commitment amount of $475 million.
The $32 billion pension fund's new tactical plan, which has an upper range of $617.5 million, was approved at its board meeting Wednesday, said spokeswoman Mary Jane Wardlow in an email.
The prior target for the fiscal year ending Aug. 31 was $400 million. Investment staff recommended increasing the current fiscal year's target for the pension fund's $1.2 billion private infrastructure program due to changes in the market since the plan was originally approved before the beginning of the current fiscal year.
"When the FY21 annual tactical plan was prepared at the beginning of the pandemic, the trust's value had reached some of its lowest levels during the crisis. In light of that and seeking to pace the deployment prudently to reach the portfolio's 7% target allocation by 2023 or 2024, the team had proposed a target commitment slightly lower than usual," according to a presentation included with board meeting materials.
As of March 31, the pension had committed a total of $305 million to three infrastructure funds and four co-investments fiscal-year-to-date.
The new plan falls in line with traditional annual targets for infrastructure. The board also approved a fiscal year 2022 plan targeting $450 million in commitments with a range between $315 million and $585 million.
As of March 31, the actual allocation to infrastructure was 3.8%.