MPs’ pension fund hires social infra manager
Pardon the Interruption
This article is just an example of the content available to mallowstreet members.
On average over 150 pieces of new content are published from across the industry per month on mallowstreet. Members get access to the latest developments, industry views and a range of in-depth research.
All the content on mallowstreet is accredited for CPD by the PMI and is available to trustees for free.
The Parliamentary Contributory Pension Fund has invested in a social infrastructure fund, committing 5% of its portfolio to property impact investment.
The trustees of the roughly £786m PCPF have agreed to invest in the Newcore Social Infrastructure Income Fund, saying they expect the commitment to be funded in the autumn. The infrastructure fund invests in education, healthcare, medical research, transport and waste management.
“Its focus is on the ongoing improvement of existing buildings, to ensure environmental future-proofing and preserve embodied carbon,” the scheme said.
In May last year, Newcore Capital announced the £190m final close for its fifth UK social infrastructure real estate fund, its largest ever capital raise. Limited partners in Newcore Strategic Situations V included the local authority pension funds for Merseyside and Clwyd among others.
The trustees of the roughly £786m PCPF have agreed to invest in the Newcore Social Infrastructure Income Fund, saying they expect the commitment to be funded in the autumn. The infrastructure fund invests in education, healthcare, medical research, transport and waste management.
“Its focus is on the ongoing improvement of existing buildings, to ensure environmental future-proofing and preserve embodied carbon,” the scheme said.
In May last year, Newcore Capital announced the £190m final close for its fifth UK social infrastructure real estate fund, its largest ever capital raise. Limited partners in Newcore Strategic Situations V included the local authority pension funds for Merseyside and Clwyd among others.
Infrastructure moves up the agenda
The PCPF has previously committed to investing 5% of its assets with Foresight Energy Infrastructure Partners. One of Foresight’s investments is a 35-turbine onshore windfarm in rural Sweden called Skaftåsen, which is expected to generate 524GWh of green electricity a year. The scheme also has investments in the BlackRock Global Renewable Power Infrastructure fund.
In April 2023, the career average revalued earnings scheme held more than half of its assets (56%) in global equities, and 12% in hedge funds. Of the remainder, 22% was allocated to bonds and 9% to property, with 1% held as cash. Managers included MFS International, BlackRock and Schroders for global equities, Pimco for global bonds, BlackRock for gilts, M&G Investments for European loans, Barings for private loans, and BlackRock, Schroders and UBS for property, according to the 2022-23 annual report.
At its last valuation as at 1 April 2023, the scheme had a past service funding level of 122%, up from 104%, thanks to higher than expected investment returns of around 9.9% a year over the three-year period since 2020.
The PCPF is chaired by Sir Brian Donohue. The latest addition to the board, which includes Meg Hillier, Harriet Baldwin and Clive Betts among others, is Sarah Champion. The Labour MP for Rotherham joined it in March to “strengthen focus on the administration of the scheme and ensure successful implementation of the McCloud project”, according to the fund.
A spokesperson at the House of Commons declined to comment.
