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CalSTRS awards infrastructure mandate to IFM

01 March 2012

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The California State Teachers' Retirement System (CalSTRS) which is worth around $130bn, has awarded Industry Funds Management (IFM) an infrastructure mandate worth up to $500m. 

The money is to be invested in a diversified portfolio of core infrastructure assets in North America and Europe. It is one of the largest single U.S. fund management commitments made in infrastructure.

"What the recent economic crisis demonstrated was the need for greater diversification in our investment portfolio, in areas that would also serve as a hedge against inflation," said chairman of the CalSTRS Investment Committee, Harry Keiley. "This type of investment aligns our goals as patient long-term investors with both the jobs generation and infrastructure improvement our economy needs."

Last month IFM was awarded an infrastructure investment mandate from Leicestershire County Council Pension Fund worth £35m, one of the largest to be offered by a UK local authority in 2011.

Elseswhere, the £1bn Flintshire County Council Clwyd Pension Fund is looking to expand its 'frontier market' asset allocation by putting out a tender worth £7m.

The financial services firm bfinance is to assist with manager selection for the Welsh local authority fund's mandate which will not limit itself to the one particular asset class but will see equity investments take the lead with a possibility of allocation to both debt and property as well.

Another local authority fund, the £3.4bn Essex County Council scheme, has appointed Stafford Timberland Group to manage its £60m timberland portfolio. Alternatives make up just under a quarter of the local authority's portfolio.

Good news too last week for Aberdeen Asset Management. The manager has been awarded a European multi-manager mandate from the Employees Retirement System of Texas.

The Pan-European portfolio will be constructed and managed by Aberdeen's property multi-manager team. Aberdeen currently manages around $2bn in European property multi-manager mandates, with further assets under management in Asia and the Americas.   

First published 24.02.2012

azeevalkink@wilmington.co.uk