Indiana Pension Rebalances Alts While Expanding Infrastructure Portfolio

The $54 billion Indiana Public Retirement System (INPRS) is reshaping its alternatives portfolio, reducing its exposure to risk parity strategies while continuing to expand investments in private infrastructure as part of a broader asset allocation overhaul.

The Indianapolis-based pension system terminated a risk parity mandate in May following a board-approved policy change that lowered the strategy’s target allocation from 20% to 15% of plan assets. The move comes despite the strategy posting gains of more than 25% year to date, according to staff reports presented to trustees.

INPRS remains overweight its separate absolute-return portfolio, which exceeds $3 billion in assets. The pension’s risk parity allocation totals approximately $11.7 billion.

At the same time, investment staff increased commitments to infrastructure within the fund’s private real assets portfolio, which carries a long-term target allocation of 10%.

The largest commitment was a $125 million investment in Basalt Infrastructure Partners, a diversified core-plus and value-add infrastructure strategy focused on North America and Western Europe. The pension also approved a $15 million co-investment alongside H.I.G. Infrastructure Fund, an existing manager relationship that began in 2023.

INPRS’ real assets portfolio, which totals approximately $5 billion, generated a 4.7% return for fiscal year 2026 through May.