Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
Quick links:
  • Home
  • The Actuary Issues
  • February 2013
02

Ten pension funds signed up to infrastructure platform

Open-access content 19th February 2013

A total of ten pension funds are now signed up to a government-backed scheme to provide investment capital for major infrastructure projects.

2

The National Association of Pension Funds announced yesterday that the London Pension Fund Authority and Lloyds TSB had become the latest funds to commit to the initiative, which is known as the Pensions Infrastructure Platform.

Each of the 10 investors has made a 'soft' commitment of £100m to the PIP. This means that if the platform does get up and running it will be half way to the target of £2bn it aims to invest in 'core' infrastructure projects that are free of construction risk and not subject to usage. This is expected to include regulated utilities and non-toll roads.

The NAPF is setting up the platform in conjunction with the Pension Protection Fund and Treasury, although it will be fully independent of government. NAPF chief executive Joanne Segars said: 'We have made excellent progress to secure £1bn in just over a year, and we are pleased to welcome two more funds on board.

'Infrastructure projects can be a very good match for pension fund liabilities, but so far UK pension funds have struggled to explore this asset class. This new platform will make it much easier for them to do so.'

Edmund Truell, chair of the LPFA, said he was confident that the PIP would provide 'attractive, risk-mitigated returns' to enable the fund to meet its liabilities for the long-term benefit of pensioners.

Eric Stobart, chair of the investment and funding committee of the Lloyds TSB Group Pension Schemes, added: 'Infrastructure, when available in appropriate structures, should be an attractive asset class to UK pension schemes and the PIP should be an important step in making infrastructure more accessible.'

According to the NAPF, the PIP remains on track to launch in the first half of this year. A corporate administration structure is in place and consultancy PricewaterhouseCoopers had been hired to provide support in selecting a manager for the platform.

For the platform to be formally established, its investment criteria, asset preferences and fee structures will need to be agreed and, if required, Financial Services Authority approval will be sought. As and when these stages are completed, the founding investors will provide their capital.

The other funds involved as founders of the PIP are: British Airways Pension Scheme; BAE Systems Pension Funds; BT Pension Scheme; the Pension Protection Fund; Strathclyde Pension Fund; Railways Pension Scheme; and West Midlands Pension Fund.  The final fund does not wish to be named.

This article appeared in our February 2013 issue of The Actuary.
Click here to view this issue
Filed in:
02
Topics:
Investment
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

IFRS 17 consultant

Hong Kong
Negotiable
Reference
118883

Wealth Investment Associate Manager

Edinburgh, Scotland / West Midlands, England, Birmingham / England, London
£40000 - £55000 per annum + bonus + benefits
Reference
118882

Lloyd's Managing Agency - Actuarial Analyst

London (Central)
Up to £65000 per annum + benefits
Reference
118881
See all jobs »
 
 

Most-Popular

 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2020 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200