POWERED BY MOMENTUM MEDIA
UK pension funds invests in renewable energy
Greater Manchester and London Infrastructure Limited (GLIL) has committed £60 million ($128.3 million) towards funding the construction and operation of British renewable energy assets.
Iona Capital will be responsible for sourcing and management of the individual projects.
The investment will first fund £9 million towards Essex biomass plant Leeming Biogas, with five to 10 other projects. The projects are aimed to create a balanced and diversified portfolio mix using various counterparties and feedstock suppliers.
GLIL is a £500 million infrastructure investment joint venture between Greater Manchester Pension Fund (GMPF), and the London Pensions Fund Authority (LPFA).
GMPF assistant executive director, Paddy Dowdall, said "we have underwritten this investment with a double-digit return and an expectation of early cash flows — attractive characteristics for out portfolio".
LPFA chief investment officer, Chris Rule, said infrastructure investment provided an attractive opportunity to drive both capital and inflation linked cash flows and well suited to its long-term investment horizon.
"We are building a diversified portfolio of operational and greenfield assets and are delighted to make this first investment, which will provide equity capital for the development of essential new build energy infrastructure in the UK," he said.
The investments will utilise proven biological and thermal conversion technologies such as anaerobic digestion and biomass combined heat and power.
The venture will finance projects from planning consent through construction, with the intention of holding the operation plants through their economic life.
Recommended for you
Australian superannuation funds have slightly lifted their hedge ratios on international equities, reversing a multi-year downward trend.
Challenger’s chief economist expects the US economy will see a prolonged recovery with President Donald Trump’s policies unlikely to have a lasting effect on equities and investments.
A research firm says errors are a “natural part” of running a company with humans and has reversed its previous poor rating for the exchange.
The world’s largest wealth manager remains overweight on US stocks spurred on by AI, but is taking a “granular” approach when assessing trade war damages.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
