Infrastructure platform reaches first £1bn

MotorwayA £1 billion (€1.4 billion) milestone has been reached for investment in UK infrastructure by pension funds using the Pensions Infrastructure Platform (Pip).

Pip, which was set up by UK pension funds for their own use, has worked with asset managers to try and deliver attractively structured and priced specialist infrastructure investment funds for both small and large pension schemes.

It has a target size of £2 billion and charges fees of around 50 basis points for the low-risk investments it makes, with a target yield of RPI +2.5% to match liabilities.

The first Pip fund closed in February 2014 and is managed by Dalmore Capital.

Over £500 million of commitments have been raised for the Dalmore PPP Equity PiP Fund; over £130 million of commitments for the Aviva Investors PiP Solar Photovoltaics (PV) Fund; and over £370 million in another co-investment alongside Dalmore Capital.

Mike Weston, chief executive of Pip, says: “Historically it’s been difficult and expensive for individual pension funds to invest in infrastructure on their own and the Pip was set up to change this by providing another, better, option for infrastructure investing.”

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