Pension funds make turbine investment

Pensions funds involved in an exclusive UK infrastructure platform are preparing to make their first investment in wind turbines to support their pension payment obligations.

The Pensions Infrastructure Platform (PIP), which a number of UK pension funds created for their own investments in long-term infrastructure projects, is making its first equity investment through a fund called the PiP Multi-Strategy Infrastructure Fund (MSIF).

The fund has bought a portfolio of 31 individual wind turbines from Golden Square Energy, a renewables business.

All of the turbines are operational in the UK and accredited under the UK’s feed-in-tariff regime, which PIP said would give yield a predictable revenue.

The investment is also expected to provide investors with 20 years of inflation-linked cash flows, which Mike Weston, chief executive of PIP, said would provide schemes with the “secured, long-term, inflation-linked cash flows they are seeking to support their accrued pension payment obligations”.

The fund is open to all UK pension schemes, and has a minimum investment requirement of £1 million (€1.17 million) to allow smaller schemes to participate and achieve the scale benefits similar to larger schemes.

©2016 funds europe

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