The Ontario Pension Board has earmarked $200 million to AMP Capital for investment in global infrastructure.
Details from IPE Real Estate:
Launched in October, the strategy is aiming to raise CAD2bn (€1.57bn) for investments in OECD transport, communication and utilities.
AMP, which manages unlisted and listed infrastructure investments in Asia, Europe, North America, Australia and New Zealand, said the strategy currently holds a $750m portfolio of diversified European infrastructure equity assets.
Glenn Hubert, a private markets managing directors at OPB, said the pension fund was attracted by the possibility to gain exposure to multiple, high-quality assets.
OPB had a 3.2% allocation to infrastructure at the end of last year.
The commitment, he added, grows OPB’s presence in North America, a region that AMP has been building its presence in. The manager has an infrastructure equity team in New York.
AMP Capital global head of infrastructure equity Boe Pahari said growing numbers of institutional investors are seeking greater exposure to alternative assets such as infrastructure, attracted to ”predictable risk-adjusted returns, consistent yields and portfolio diversification”.
As reported in October, private equity firm Pantheon is among investors backing AMP Capital’s strategy.
The Ontario Pension Board manages more than $19 billion in assets.