Fund commits to pension platform
The fund has also set aside £100,000 to fund start-up costs, “subject to the drafting and negotiation of appropriate documentation”.
Any firm commitment will be the subject of a further approval process by the fund’s committee, it added.
The Treasury has been working closely with pension funds and representative bodies including the Pension Protection Fund and the National Association of Pension Funds to establish the PIP as part of the government’s efforts to encourage greater investment in infrastructure by institutional investors.
Alan Rubenstein, chief executive of the Pension Protection Fund, told the Observer in March that it is unlikely money will begin to flow into the PIP before 2013.
The PIP is designed to provide an investment vehicle to support pension funds that want to invest in infrastructure but do not have the capacity to run such investments in-house.