The Pensions Infrastructure Platform has responded to the National Infrastructure Commission’s (NIC) consultation, outlining a number of key requirements to enable greater infrastructure investment by UK pension schemes.
Mike Weston, Chief Executive, PiP, says: “There is no shortage of appetite from UK pension schemes to invest in infrastructure. The Pensions Infrastructure Platform, set up by pension schemes for pension schemes, has so far helped pension schemes make over GBP1 billion of commitments to invest in UK infrastructure projects. But pension schemes’ ability to invest in infrastructure must be seen in the context of their ultimate responsibility, which is to pay members’ benefits on time.
“The Commission has the potential to play a vital role in setting the long-term priorities for infrastructure investment in the UK, but its success will lie in whether it can encourage Government and the market to provide a long-term pipeline of the right kind of infrastructure assets, structured in such a way that they are attractive to UK pension funds. For this to happen it’s critical that decisions on the UK’s long-term structural needs are separated from short-term political interference and there is confidence that implementation decisions will be taken within a defined period.
“A system which clearly identifies the UK’s infrastructure needs and creates confidence that those needs will be swiftly prioritised and acted upon, will find plenty of UK pension scheme capital available to support those projects structured to deliver long-term, low risk, inflation linked cash flows.”
PiP launched with a target to invest GBP2 billion into UK infrastructure and has already helped mobilise commitments of GBP1 billion. It recently gained FCA authorisation to act as an investment manager in its own right and has just launched the PiP Multi Strategy Infrastructure Fund to raise the further GBP1 billion.
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