This paper is the fourth in ACE’s infrastructure investment series and explores in more detail the current conditions within the market, and the implications they have on pension funds’ investment potential into infrastructure.
Key findings include:
- The scale of the global pensions fund market holds great potential for investment
- Government role is important given the challenge ahead
- There is mutual benefit in pension fund investment into infrastructure
- Infrastructure could help to improve pension funds’ funding status
- The UK’s pension fund market is fragmented and so restricts the scale of investment required by infrastructure; opening this up could generate £6bn of investment
- Culture and regulations within the UK need to change if significant investment is to take place
- Tailoring products and investment to pension funds needs is essential
- Expectations of returns and risk need to be realised by all parties
- Pension funds are not the answer to all the UK’s investment requirements
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