Decision details

The Committee received a report outlining the proposed Infrastructure Investment Strategy for the fund.

The Fund had successfully deployed 6% of the Fund in infrastructure assets. The Fund had sought a diversified portfolio of income producing infrastructure assets accepting some economic risk. This has produced net returns over the first four years of investment of around 16% per year.

The report proposed that the target of the infrastructure allocation should be a split weighted towards direct investment as follows:

Direct investment:   Two thirds

Fund- based investments:One third

The report proposed that the Fund should actively build a portfolio of direct investments in regulated and economic infrastructure where the investment case indicates that the asset will achieve at least the benchmark return of 8% per year even using a pessimistic set of assumptions.

There was a discussion around how the Committee could effectively be kept up to date on the work of the Investment Panel. It was agreed that the Director of the Pension Fund would discuss options with the Chair in due course, having regard to the issues of corporate confidentiality.

Resolved: - That the Infrastructure Investment Strategy, now presented, be approved