UK pension invests £20m in AMP Capital fund

The Merseyside Pension Fund, ‘the fifth-largest local authority pension fund in the UK’, has made the commitment as part of its growing infrastructure portfolio. The pension has about £60m invested in the asset class, but wants to raise its total infrastructure portfolio to £100m.

The Merseyside Pension Fund, billed as “the fifth-largest local authority pension fund in the UK”, has invested £20 million (€23 million; $33 million) in a European infrastructure fund managed by Sydney-based AMP Capital Investors – the Strategic Infrastructure Trust of Europe (SITE).

The allocation is part of the roughly £4.9 billion pension fund’s growing infrastructure portfolio, a spokesman from Merseyside Pension Fund told Infrastructure Investor. He added that the pension created a 2 percent real assets allocation, targeting infrastructure and timber, in January and that it is aiming to grow its infrastructure portfolio to £100 million. The pension currently has £60 million invested in infrastructure, the spokesman said.

“The attractiveness of real and stable assets in an environment with potential inflationary pressures has led us to investment in infrastructure and other real assets,” Peter Wallach, Merseyside Pension Fund head of pensions, commented in a statement. 

Boe Pahari, AMP Capital’s head of infrastructure Europe, said AMP was looking “to further develop our infrastructure business in the UK and Europe” and was glad “to be managing the infrastructure allocation of one of the largest pension funds in the UK”.

SITE is an open-ended infrastructure fund established in 2005. It has invested in seven infrastructure assets to date including rolling stock companies Angel Trains and Alpha Trains; Spanish oil storage and transportation firm CLH; utilities Thames Water, Wales and West Utilities and Kenyeri Hydro; as well as BAA Toggle, a debt facility provided to UK airports operator BAA.

AMP Capital has $6 billion in infrastructure assets under management across the world.