LGPS funds form infrastructure investment partnership

22 Jan 15

Local government pension funds in Manchester and London have formed a new partnership that will allocate £500m to invest in infrastructure projects.

Under the plan, the funds will seek to make investments over the next three or four years. Each said that they could invest in projects in their local areas, but insisted they would be flexible in determining investment projects.

The proposed joint investment structure comes as the government has called for greater use of common investment vehicles across the 89 LGPS funds in England.

Announcing the deal, GMPF chair Kieran Quinn said: ‘In the UK we are only beginning to realise the potential for public pension funds to support the development of infrastructure projects, at the same time as delivering sustainable, high-quality returns to scheme members and employers.

‘GMPF are long-standing investors in infrastructure and we look forward to using our experience and knowledge to help build this into something of great value to the UK as a whole, with an initial focus on Greater Manchester and London, which are two key areas in driving growth.’

LPFA chief executive Susan Martin said the creation of an infrastructure investment platform is another step towards closing the fund’s deficit, which was estimated at £483m in its latest triennial valuation.

‘To meet our pensions liabilities we need a balanced portfolio that includes assets with a long-term profile. While at the same time by focusing on British infrastructure we are investing in an area that so badly needs it,’ she added.

‘We look forward to working with GMPF to deliver projects that will provide both for our members and at the same time support the wider social need.’

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