The California Public Employees Retirement System, the largest U.S. public pension plan, agreed to spend more of its money on infrastructure in the state.
The fund’s 13-member board voted today to invest up to $800 million in public and private projects involving transportation, energy, natural resources, utilities, water and communications in California during the next three years.
Calpers already planned to use about 2 percent of its $225.4 billion portfolio on developing such things as airports, roads and utilities including power plants as a way to hedge against inflation. Of that, three-fifths will be invested in the U.S. Of that domestic portion, 20 percent will be used California.
“We are prepared to increase our investments in infrastructure with our first and foremost goal being on investment returns, and a secondary goal of supporting essential community services that are crucial to continued economic development, a safe environment and healthy schools and communities,” Rob Feckner, the board’s president, said in a statement.
Calpers in July said it earned a return of 20.7 percent in the 12 months through June, its best result in 14 years, led by gains in stocks and private equity.
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