CalPERS Makes First U.S. Transportation Investment, Purchases Share of Toll Road in State of Indiana
May 4, 2016
Communications & Stakeholder Relations
Brad W. Pacheco, Deputy Executive Officer
Wayne Davis, Chief, Office of Public Affairs
Contact: Joe DeAnda, Information Officer
SACRAMENTO, CA - The California Public Employees' Retirement System (CalPERS) today announced that its Infrastructure program has made its first U.S. transportation investment, purchasing a 10 percent share of the Indiana Toll Road Concession Company LLC (ITRCC) from global fund manager IFM Investors. ITRCC operates and maintains a 157-mile divided highway, known as the Indiana Toll Road (ITR), through an agreement with the Finance Authority for the State of Indiana.
"This solid, long-term investment represents our first foray into a transportation asset in the United States," said Paul Mouchakkaa, Managing Investment Director for CalPERS' Real Assets program. "We continue to make progress building up this important program, and the ITRCC aligns well with our recently adopted strategic plan for real assets."
The ITR spans northern Indiana, from its border with Ohio to the Illinois state line near Chicago. ITRCC has the exclusive right to collect revenues from the toll road for the next 65 years. IFM Investors continues to hold more than 85 percent of ITRCC. Pricing and details of the purchase are not being released at this time.
The role of CalPERS' Infrastructure program is to hold ownership of essential infrastructure assets that provide predictable returns with moderate long-term inflation protection. Infrastructure also acts as an economic diversifier to equity risk in the portfolio. With this purchase, the program makes up slightly more than one percent of the total fund, with a net asset value of approximately $3.1 billion.
For more than eight decades, CalPERS has built retirement and health security for state, school, and public agency members who invest their lifework in public service. Our pension fund serves more than 1.8 million members in the CalPERS retirement system and administers benefits for nearly 1.4 million members and their families in our health program, making us the largest defined-benefit public pension in the U.S. CalPERS' total fund market value currently stands at approximately $294 billion. For more information, visit www.calpers.ca.gov.
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