I can’t think of a better investment. A good thing all around.
Infrastructure gets big boost
CalPERS to use its investment might on government projects.
By Gilbert Chan - Bee Staff Writer
Published 12:00 am PDT Tuesday, September 11, 2007
California's deep-pocket public pension fund is poised to invest up to $1.5 billion over the next year in building bridges, power generating plants and other government rebuilding projects.
In approving a pilot investment program Monday, trustees of the $246 billion California Public Employees' Retirement System are signaling a push into an emerging investment category drawing enormous interest from pension funds worldwide.
CalPERS, the nation's largest public fund, wants to get a foothold in an international infrastructure marketplace estimated to be $288 billion.
While infrastructure projects have gained popularity with pension funds in Australia, Canada and Europe, they are relatively new in the United States.
Increasingly, though, cash-strapped states, cities and other government agencies are turning to private investors to help retool an aging U.S. infrastructure network. Over the next five years, the United States will spend $1.6 trillion on improvements.
