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Feb. 7 (Bloomberg) -- The California State Teachers’ Retirement System, the second-largest U.S. public pension, said it will invest $500 million in infrastructure projects such as water lines and mobile-phone towers.
The pension fund will make the investments in two parts over 18 months through Australia’s Industry Funds Management Pty Ltd., said Ricardo Duran, a spokesman for the California retirement system. The investments will be placed primarily in North America and Europe, Duran said.
The $144.8 billion pension fund is ramping up a new program to invest in infrastructure as a way to hedge against inflation and build stable, long-term revenue sources. The California Public Employees’ Retirement System, the largest public pension in the U.S. with $233 billion, has a similar program.
“Because we are so new at this, it’s in the core infrastructure which are things like water transmission, power lines, cell-phone towers,” Duran said in a telephone interview.
Phil Davey, a spokesman for Industry Funds Management, said he wasn’t immediately able to respond to a Bloomberg News request for comment.
The investment was reported earlier by the Wall Street Journal.
--With assistance from Jacob Greber in Sydney. Editors: Pete Young, Andreea Papuc
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