Responding today (Wednesday) to the Government’s National Infrastructure Plan 2013, Joanne Segars, Chief Executive, NAPF, said:
“Today’s announcement on the new National Infrastructure Plan is welcome. The current review of European rules to incentivise investment in a wider range of assets should make it easier for institutional investors to invest in infrastructure as an asset class, something that the NAPF has strongly advocated for some time.
“It is important, however, that this is balanced by a strong pipeline of assets that are suitable investment vehicles for pension funds, including assets with strong inflation-linkage to help pension funds match their liabilities.
“The Pension Infrastructure Platform (PIP) is working towards a first close with its founding investors and there has been a significant level of interest from other pension funds.”
Notes to editors:
The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
The PIP will be a new, not-for-profit, infrastructure fund, by pension funds and for pension funds, aligned to the long-term interests of the UK pension funds who will be its main investors. This is the first time UK pension funds have combined to create such a financial entity in the UK. Key features of the PIP are:
- Target size of £2bn
- Low leverage
- Low fees, c50bps
- Low risk, the PIP is expected to invest at the low-risk end of the infrastructure asset spectrum, and in projects free of construction risk
- Inflation-linked, fund is seeking long-term cash returns of RPI+2-5% (i.e. as a liability match)
Lucy Grubb, Head of Media and PR, 020 7601 1726, [email protected]
Dee Sullivan, Communications Adviser, 020 7601 1717, [email protected]