AMP Capital has won a new investment allocation to its European flagship fund – the Strategic Infrastructure Trust of Europe – from Merseyside Pension Fund, the fifth largest local authority pension fund in the UK.
Demand for infrastructure investment is increasing, according to AMP Capital head of infrastructure Europe, Boe Pahari. He said this is particularly the case as governments seek to focus the infrastructure and utilities sectors. Also, as companies within these industries seek to "streamline their balance sheets and divest assets into ongoing fund development", more opportunities become available for infrastructure managers to invest in new assets.
AMP Capital is progressing an active deal pipeline within a range of infrastructure sectors, including energy/utilities, transport, and social infrastructure in the United Kingdom (UK) and Europe, which will see its Strategic Infrastructure Trust of Europe (an open-ended fund) target its next close in December this year.
"As we look to further develop our infrastructure business in the UK and Europe, we are pleased to be managing the infrastructure investment allocation of one of the largest pension funds in the UK," Pahari said.
Merseyside Pension Fund head of pensions, Peter Wallach, said the appeal of "real and stable assets in an environment with potential inflationary pressures" had led the fund to invest in infrastructure and other real assets.
Established in 2005, the Strategic Infrastructure Trust of Europe invests in a portfolio of diversified infrastructure assets in the UK and Western Europe. The Fund currently holds seven investments: Angel Trains, Alpha Trains, Compania Logistica de Hidrocarburos, Wales and West Utilities, Kenyeri Hydro, BAA Toggle and Thames Water.
