Pensions Infrastructure Platform closes in on equity mandate decision

The National Association of Pension Funds (NAPF) has announced that it is in final discussions with Dalmore Capital over the role of manager of the equity mandate of the Pensions Infrastructure Platform (PIP).

NAPF chief executive, Joanne Segars, commented: “The PIP is working towards a first close with its founding investors. Discussions are ongoing with regard to an investment management role for Dalmore Capital.” The NAPF said that a number of asset managers have been shortlisted for investment mandates and that discussions are still ongoing with other investment managers for the remaining mandates.

On the role of infrastructure as an investment for pension funds, Segars said: “We’ve seen a significant level of interest in the Pensions Infrastructure Platform from pension funds, and the Government’s National Infrastructure Plan 2013 is also welcome. However, the Government’s plan must provide a pipeline of assets that are suitable investment vehicles for pension funds, including assets with strong inflation-linkage to help pension funds match their liabilities.”

The PIP is intended to be an infrastructure fund run by pension funds for pension funds, in order to ensure a proper alignment of interests when investing in infrastructure. It will aim to have low leverage, low fees of around 50 basis points a year, and returns of inflation (as measured by RPI), plus 2-5%.