Data insight: Meet the PIP

We take a look at the Pensions Infrastructure Platform’s founding members.

Now that the UK’s Pensions Infrastructure Platform (PIP) has started its search for a manager, we thought it would be a good time to give you some more information on the platform’s founding members. 

First, a quick recap: for those of you unfamiliar with this initiative, the PIP is a platform proposing to pool together UK pension funds to invest in core infrastructure. It aims to raise £2 billion (€2.4 billion: $3.1 billion) for that purpose and currently counts 10 founding investors, which have each made ‘soft commitments’ of £100 million to the platform. 

With the help of financial services firm PricewaterhouseCoopers and law firm Clyde & Co, it is requesting expressions of interest – from May 13 to May 31 – to develop an in-house manager, outsource fund management, or implement a combination of both. The PIP is also open to awarding more than one management mandate. 

The PIP’s founding members (see chart below) currently have a total of £3.23 billion committed to infrastructure. 

They include the British Airways pension schemes, managed by British Airways Pension Investment Management Ltd; the British Aerospace Pension Fund (BAE Systems); the BT Pension Scheme; the Lloyds TSB pension funds; the London Pension Fund Authority; the Pension Protection fund; the Railways Pension Scheme, managed by the Railways Pension Trustee Company; Strathclyde Pension Fund; and the West Midlands Pension Fund.

Below, you can see the percentage each of these has allocated to infrastructure.   

PIP chart 3 411

 

Source: Infrastructure Investor Research & Analytics  

PIP has been billed as “for pension funds, by pension funds”, with its model drawing comparisons with that of Australia’s Industry Funds Management. Once it’s up and running later this year, the PIP will target core infrastructure assets with a return target of Retail Price Index (RPI) + 2 percent to 5 percent. It also intends to use only low levels of leverage to fund its deals. 

*To get more individual information on the PIP’s founding members, please refer to the data profiles on the right hand side. Also, please find our poll on the Pensions Infrastructure Platform on the home page – and register your vote!