|
Pension fund officials have reached an agreement with the government to invest in infrastructure projects, it has been revealed.
Yesterday (28th November), the National Association of Pension Funds (NAPF) and the Pension Protection Fund (PPF) signed a memorandum of understanding with chancellor George Osborne to create a new pension infrastructure platform.
This will allow UK pension funds to pool their resources and invest in major infrastructure assets and projects such as roads and airports.
Joanne Segars, chief executive of the NAPF, expressed her delight at the completion of the deal.
She said: "This could be a real win-win. The UK desperately needs to update its infrastructure, and pension funds are looking for inflation-linked, long-term investments.
"Infrastructure is a good fit with the needs of pension funds because projects like ports and power stations can offer a reliable return over a long timeframe."
Around 1,200 pension funds with an investment portfolio of £800 billion are represented by the NAPF, while the PPF protects 12 million pension scheme members who hold over £6 billion in assets.
|