Merseyside鈥檚 local government pension scheme is looking to allocate a further 2 percentage points to infrastructure investment and join the Greater Manchester Pension Fund (GMPF), London Pension Fund Authority (LPFA) and Lancashire Pension Fund in their GLIL pool.
In a Wirral Council update to be presented tomorrow, Merseyside, which has a 5% allocation to infrastructure, said an 鈥渋ncrease in its allocation to infrastructure is anticipated鈥� as part a recent review of its asset allocation. A final decision on the allocation is more likely next year, IPE Real Estate understands.
A report brought to Merseyside鈥檚 committee in September set out the background to its intention to join GLIL, the 拢500m infrastructure investment joint venture by the GMPF and the LPFA.
West Yorkshire Pension Fund is also joining GLIL, Merseyside said.
Infrastructure investments will only be made if officers are satisfied they meet the fund鈥檚 risk and investment return requirements, it added.
鈥淒irect and co-investments bring greater idiosyncratic risk,鈥� Merseyside said, 鈥渂ut this can be controlled with suitable advice and expert operational management of the assets.鈥�
As previously reported, GLIL to 拢1bn to include investment from the Northern Pool and Local Pensions Partnership (LPP).
It is also planned to open the joint venture to other local government pension funds.
The 拢35bn Northern Pool 鈥� previously known as the Northern Powerhouse Pool and backed by as well as the and 鈥� has a longer-term allocation of 15% to infrastructure.
Separately, the 拢1.2bn of existing core real estate allocations from the LPFA and Lancashire County Pensions Fund (LCPF), which hold 拢300m and 拢550m in the pool, respectively.
