The joint boards of the Fresno City (Calif.) Retirement Systems formally approved an infrastructure pacing plan for 2023 and beyond, according to the minutes of a March 28 board meeting.
Under the pacing plan, the retirement systems are projecting additional commitments to infrastructure of $25 million each year from 2023 through 2025. Subsequently the commitments will decline to $15 million annually from 2026 through 2032, the minutes said. These are projected to achieve a 7% allocation to infrastructure each year.
As of March 31, CFRS had $205 million in infrastructure assets, or a total exposure of 5.7%, below the 7% target allocation for infrastructure assets, confirmed Robert Theller, retirement administrator, in an email.
As of March 31, CFRS had total assets of about $3.6 billion, Mr. Theller added.
The infrastructure portfolios are currently invested in J.P. Morgan Infrastructure Investments Fund and Ullico Infrastructure Fund, the minutes said.
Consulting firm NEPC worked in conjunction with CFRS staff to develop the pacing plan.
CFRS is made up of two pension funds: Employees Retirement System, and Fire and Police Retirement System. Each has a separate five-member board of trustees, but the investments are run jointly by the two boards, Mr. Theller added.