Three members of the Local Government Pension Scheme (LGPS) have joined forces with Greater Manchester and London Infrastructure Limited (GLIL) to create a pool of £1.275bn to invest in UK infrastructure.
The three LGPS schemes – the West Yorkshire Pension Fund, Merseyside Pension Fund and Lancashire County Pension Fund – are from the LGPS Northern pool, formed to meet the government’s aim of creating a smaller number of larger asset pools across the LGPS in England and Wales.
They join the London Pensions Fund Authority (LPFA) and Greater Manchester Pension Fund (GMPF) infrastructure joint venture, known as GLIL Infrastructure, in a move that more than doubles the assets under management of the group, from £500m to £1.275bn.
GLIL Infrastructure said the move allowed it access to a greater pool of financial commitments and investment expertise from its five contributing funds, enabling it to become “a significant and serious investor in the UK infrastructure market”.
The infrastructure group was launched in April 2015. It is an investment joint-venture created to increase the members’ exposure to UK infrastructure, deliver long-term returns that match liabilities and support major UK infrastructure projects.
The group said it actively co-invests with multiple partners, has a very low cost base and claims to have a flexible investment approach.
