The Illinois Municipal Retirement Fund (IMRF) has issued a Request for Proposal (RFP) for open-end infrastructure equity funds. This move signals a continued interest in infrastructure investments from institutional investors. IMRF is seeking diversified core and core-plus funds, indicating a desire for stable, long-term returns within this sector. This is a common strategy for pension funds looking to diversify their portfolios.

This RFP reflects the growing appetite for infrastructure investments, which are often seen as a hedge against inflation. Open-end funds offer liquidity compared to closed-end funds, allowing for easier entry and exit. The increasing demand for infrastructure assets is driven by the need for upgrades and new projects across various sectors. Investors are attracted to the potential for steady income streams.

The search for infrastructure funds suggests that IMRF is looking to increase its exposure to this asset class. Infrastructure investments encompass a wide range of projects, including transportation, utilities, and digital infrastructure. Such investments are often viewed as a way to generate returns that are not correlated with traditional markets.

What's next? Investors will watch to see which firms respond to the RFP and the size of the allocations. The outcome will provide further insight into the allocation strategies of large pension funds. The selection process will reveal the current market preferences for core versus core-plus infrastructure strategies.