NAPF launches first infrastructure fund

Entareyehirungu · 2014-02-27T14:00:22+00:00

Maoni Binafsi: Itakuwa vema kama nasi Mifuko yetu ya Penseni itaunganisha nguvu kujiweka tayari kuwekeza michango ya Watanzania kwenye miradi mikubwa ya miundombinu kwa ubia (PPP). UTT-PID wametangulia kuingia huku lakini wasipojiunga na wengine wakawa na mtaji wa kutosha wataishia kwenye kujenga maghorofa kama ilivyo mifuko ya Pensheni kwa sasa. Makabwela pia tulioko nje ya mfumo rasmi tubadili mtazamo na tuijenge upya NICOL. Itatufaa sana katika uwekezaji wa mfumo huu --------------------------------------------- The UK's National Association of Pension Funds has launched its first infrastructure fund, part of its £2 billion investment initiative and the first time UK pension funds have banded together to buy real-world assets on their own behalf. The first fund has raised £260 million so far, from five of the initiative's founding investors, to put money into UK public-private partnership projects. It has a cap of £500 million and is in the process of raising the rest of the money. The fund will be run by Dalmore Capital, a PPP specialist appointed by NAPF in December, which in the past has acquired contracts to run "social infrastructure" assets such as hospitals, schools and prisons. The five investors who have put up money so far are the British Airways pension funds, the Pension Protection Fund, the Railways Pension Scheme, the Strathclyde Pension Fund and the West Midlands Pension Fund. A spokeswoman for the NAPF said the fund's first investment had already been agreed and "is set to be completed within one month. This transaction will see the Pensions Infrastructure Platform fund become a joint-venture investment partner in a portfolio of over 10 Private Finance Initiative/PPP equity investments alongside a large UK construction and services company." The projects span sectors including healthcare, education, and the provision of accommodation for the Ministry of Defence and emergency services, she added. The NAPF's statement this morning included a seal of approval from the chief secretary to the Treasury, Danny Alexander, one of the senior figures in the UK's coalition government. He said it was "great news" that the NAPF and its investors were using a "unique model" to invest in the country's infrastructure. The fund is the first practical implementation of the NAPF's Pensions Infrastructure Platform, an initiative aiming to raise £2 billion to put into similar investments. With the association promising a series of funds run "by pension funds for pension funds" under the PIP umbrella, the initiative could threaten the business model of certain banks and fund managers, who have charged pension schemes substantial fees to make this kind of investment. The NAPF PIP promises fees in the region of 0.5% of assets every year, in contrast to the management fees of 1% or more charged by some private sector managers, plus performance fees in some cases. The fund is targeting investments at the "low-risk end of the infrastructure spectrum", according to its statement, aiming for returns of 2.5% a year above the retail prices index. This kind of inflation-linked cash return appeals to pension funds because they have to pay pensions that also rise in line with inflation. Yesterday, it emerged that one of the investors behind a £350 million financing of the reconstruction of central Scotland's motorways was a UK pension fund; the fund for former employees of GEC Marconi, which is supported by telecoms group Telent. Joanne Segars, the chief executive of the NAPF, described the fund launch as a "major milestone" and said its investments would be "targeted at meeting the PIP's original aim to make infrastructure work for pension funds, offering investors a low-risk, long-term investments providing inflation-linked cash flows".

Thread starter Entareyehirungu
Start date Feb 27, 2014

Entareyehirungu

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NAPF launches first infrastructure fund

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