The National Association of Pension Funds (NAPF) and the Pension Protection Fund (PPF) commented on the plans to underwrite up to £40 billion of investment in infrastructure projects announced by the Government today.
Joanne Segars, Chief Executive of the NAPF, said:
“The promise of a Government backstop will help give investors more confidence when it comes to funding big infrastructure projects. This guarantee should also strengthen the growing interest among pension funds in the infrastructure investment platform we are working on with the PPF.
“The UK’s infrastructure needs updating and pension funds are on the lookout for long-term, inflation-linked investments – our platform will help match those demands.”
Alan Rubenstein, Chief Executive of the PPF, said:
“Both we and the NAPF welcome today’s announcement by the Government that they will introduce guarantees for major UK infrastructure projects. This should give investors, including pension funds, the confidence to provide the financial support that such projects need.
“The announcement should also provide further encouragement to pension fund investors to support the Pensions Investment Platform, which both our organisations are working hard to establish.
“We remain on track to launch the platform as planned in January 2013 and today’s announcement provides a welcome boost.”