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Four UK pension schemes commit to PV Fund

26 June 2015

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The Pensions Infrastructure Platform (PiP) and Aviva Investors have today announced first close on the solar photovoltaics (PV) fund.

The fund, managed by Aviva, closed on 16 June with GBP 131m of commitments from four UK pension schemes.

It was launched with the aim of delivering predictable, long-term, inflation-linked cash flows through investing in small-scale solar PV installations in the UK.

Mike Weston, chief executive of PiP, said: "Reaching a first close with GBP 131m of UK pension scheme investment commitments, after we announced the launch of the fund in February, reflects the appetite schemes have for core infrastructure assets that deliver inflation-linked cash flow returns that are a good match for their pension payment liabilities.

"It also shows the progress PiP is making in delivering a range of infrastructure investment opportunities tailored to the specific needs of UK pension schemes," he said.

The fund is expected to generate quarterly income for pension fund investors and it will now look to raise additional commitments and will have a hard cap of GBP 250m.

Returns of the fund are expected to be in line with the key feature of the PiP, at RPI+2-5%.

Matthew Graham, Business Development Director, at Aviva Investors, said they were thrilled to be on board with PiP.

He said: "Since it was first announced that we were working with the PiP, this fund has attracted strong investor interest.

"Aviva Investors' proposition in infrastructure has been designed to respond to our clients' need for outcome-oriented solutions, offering long-term secure inflation-linked income that can provide attractive risk-adjusted returns."

First published 25.06.2015

Lindsay.sharman@wilmingtonplc.com