USS pension fund strengthens UK infrastructure allocation

AeroplaneOne of the UK's largest pension schemes, the Universities Superannuation Scheme (USS), has acquired a 49.9% non-controlling stake in The Airline Group.

The move is part of an increased allocation to infrastructure.  

The Airline Group is a 41.9% shareholder in Nats Holdings, the holding company for Nats, which is a world leader in the provision of air traffic management, including ensuring the safety of aircraft flying in UK airspace and over the eastern North Atlantic.

The transaction, which is subject to regulatory approval, was arranged by USS Investment Management – a wholly owned subsidiary of USS and its principal investment manager and advisor – which will manage the investment on the pension scheme’s behalf. 

This investment will be managed by USS Investment Management’s infrastructure team, substantially reducing the overall cost of management.

In a statement, USS says UK infrastructure is attractive because it can provide inflation-linked, steady cash flows over a long time horizon, which match USS’s long-term liabilities.

Last month, USS invested £392 million (€459.9 million) in Heathrow, the UK’s largest airport.

USS reached an unconditional agreement with Ferrovial to acquire 8.65% of FGP Topco, the holding company that owns Heathrow Airport Holdings.

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