Pensions Infrastructure Platform starts search for investment manager | Pensions and Lifetime Savings Association

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Pensions Infrastructure Platform starts search for investment manager

07 May 2013

The Pensions Infrastructure Platform (PIP) will shortly open invitations for Expressions of Interest (EOI) for investment managers.

Pensions Infrastructure Platform Limited (PIP Limited), the company which has been established to facilitate the development of the PIP, is seeking Expressions of Interest (EOI) for investment management services from existing managers, teams or individuals that may be interested in managing some, or all, of the PIP’s target £2bn assets.

The EOI exercise will commence on 13 May and run until 31 May 2013.

Anyone wishing to register their interest in participating in the EOI should do so by writing to [email protected] by 10am on 13 May stating the name of the applicant, and the primary contact name and details to which correspondence in respect of the process should be sent. The EOI documentation will be sent to applicants on that date. Applicants will be given three weeks to develop and submit responses to the EOI.

The following models of investment management are under consideration:
• A “buy” option: under this option, PIP Limited could outsource the management of some or all of PIP’s assets to an existing manager or managers.
• A “build” option: under this option, PIP Limited could develop its own in-house fund manager for all or some of the assets.
• A “hybrid” option: this option would combine elements of the buy and build options, eg outsource certain sectors whilst keeping the management of other sectors in-house.

The EOI process will be the first phase in the selection of a manager (or managers). A formal request for proposal (RfP) stage will commence with a smaller number of short-listed parties following the EOI stage.

Announcing the first stage of the PIP’s investment manager selection process, Joanne Segars said on behalf of the PIP:

“The start of the investment manager selection process is an important next step in the PIP’s development. Founding Investors will be seeking an investment manager, or managers, with a strong track record, expertise, the ability to innovate and generate appropriate investment opportunities, and an alignment with the interests of pension funds as long-term investors.

“We continue to make excellent progress. Earlier this year we were able to announce that pension funds had made soft commitments of £1bn to the PIP. In addition to the investment manager selection exercise, work is continuing on a number of key areas to prepare the PIP for launch later this year.”

PIP Limited will be supported in the selection of the fund manager (or managers) by its advisers PricewaterhouseCoopers LLP and its legal advisers Clyde & Co LLP.

 

Notes to editors:

1. The Pensions Infrastructure Platform (PIP) will be a new infrastructure fund ‘for pension funds, by pension funds’. With a target size of £2bn, the PIP is expected to invest in core infrastructure assets. It is seeking returns of RPI+ 2% to 5% with a fair remuneration package and low leverage.

2. Ten pension organisations have become Founding Investors. They include: British Airways Pension pension schemes, BAE Systems Pension Funds, BT Pension Scheme, Lloyds TSB pension schemes, London Pension Fund Authority, the Pension Protection Fund, the Railways Pension Scheme, Strathclyde Pension Fund, and the West Midlands Pension Fund. Subject to the PIP being established on satisfactory terms, each has expressed an intention to invest £100m in the PIP.

 

Enquiries:

EoI participants: [email protected]

Press enquiries only: [email protected]