(London) Aviva Investors, the global asset management business of Aviva plc (‘Aviva’), and the Pensions Infrastructure Platform (PiP) have today announced the launch of PiP’s first solar photovoltaics (PV) fund with Aviva Investors as the fund manager.

 

26 FEB 2015

The fund aims to deliver predictable, long-term inflation-linked cash flows through investing in small-scale solar PV installations in the UK. The return objective is materially to outperform inflation-linked government bonds, with the fund expected to generate quarterly income for pension fund investors. 

Mike Weston, Chief Executive of PiP, said: 

“The launch of this second fund within a year is an important addition to the PiP – we said we would make a renewables fund available through the PiP and that’s exactly what we have done. The fund broadens the investment opportunities on offer, and on market-leading terms of 50bps with no performance-related element it will deliver real value to pension schemes.

“PiP remains committed to making infrastructure work for pension funds of all sizes, offering investors a low-risk, long-term investment that provides inflation-linked cash flows. We are particularly pleased to be working with Aviva Investors to launch this fund and to be able to put their expertise in this area to work for pension schemes.”

Ian Berry, Head of Infrastructure at Aviva Investors, said:

“Since 2010, when we identified the opportunity to create institutional quality investments in small-scale solar PV in the UK, we have led the market in terms of number and scale of investments made.

“We believe that this new fund and our partnership with PiP will enable an increasing number of UK pension funds to benefit from this expertise. Our investment proposition in infrastructure responds to our clients’ need for outcome-oriented solutions, offering a secure income alternative that can provide attractive risk-adjusted returns in projects that are unleveraged, long-term and inflation-linked – all of which underpin this new fund.”

Alan Goodman, Senior Portfolio Manager, Pension Protection Fund, said:

 “We became a Founding Investor of the PiP because we saw the need for a platform to provide pension schemes with access to the important asset of infrastructure in an affordable and suitable way. Today’s announcement marks the continued and successful growth of the PiP and we remain committed to this project.”

The fund will have a hard cap of £250m and first close of the fund is expected in Q2 2015. Returns of the fund are expected to be in line with the key feature of the PiP, at RPI+2-5%.

 

- Ends -

 

For more information contact:

Lucy Grubb
PiP / NAPF
+44 (0)20 7601 1726

Eleanor Bennett
PiP / NAPF
+44 (0) 20 7601 1718

Steve Ainger
Aviva Investors Media Relations
+44 (0)20 7809 8452

Notes to Editors

The information and opinions contained in this document are for use by the financial press and media only, and do not purport to be full or complete. No reliance may be placed for any purpose on the information or opinions contained in this document nor should they be seen as advice.  Past performance is not a guide to the future

Unless stated otherwise any opinions expressed are those of Aviva Investors Global Services Limited (Aviva Investors). They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature.

IMPORTANT INFORMATION UK: This document is distributed by Aviva Investors Global Services Ltd. This document is not available for general distribution in, from or into the United Kingdom because the Fund is an unregulated collective investment scheme whose promotion is restricted by sections 238 and 240 of the Financial Services and Markets Act 2000. When distributed in, from or into the United Kingdom, this document is only intended for persons having professional experience of investing in unregulated schemes, high net worth companies, partnerships, associations or trusts and personnel of any of the foregoing having professional experience of investing in unregulated schemes (each within the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001), persons outside the European Economic Area receiving it electronically, persons outside the United Kingdom receiving it non-electronically and any other persons to whom it may be communicated lawfully. No other person should act or rely on it. Other persons distributing this document in, from or into the United Kingdom must satisfy themselves that it is lawful to do so.

Aviva Investors

Aviva Investors is the global asset management business of Aviva plc. The business delivers investment management solutions and services to clients worldwide. Aviva Investors operates in 15 countries in Asia Pacific, Europe, North America and the United Kingdom with assets under management of £240 billion as at 30 September 2014.

Aviva plc

  • Aviva provides 29 million customers with insurance, savings and investment products.*
  • We are one of the UK’s leading insurers and one of Europe’s leading providers of life and general insurance. Our shares are listed on the London Stock Exchange and we are a member of the FTSE100 index.
  • We have operations in 16 countries and provide life, general and health insurance and asset management under our well recognised brand.
  • We are committed to serving our customers well in order to build a stronger, sustainable business, which makes a positive contribution to society, and for which our people are proud to work.

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* Figures based on Aviva plc Annual Report and Accounts 2013.

PiP and the NAPF 

The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,300 pension schemes with some 16 million members and assets of around £900 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.

PiP is a not-for-profit, infrastructure business being developed for pension funds, aligned to the long-term interests of the UK pension funds who will be its main investors. This is the first time UK pension funds have combined to create such a financial entity in the UK. Key features of the PiP are:

  • Target size of £2bn
  • Low fees, c50bps
  • Low risk, PiP is expected to invest at the low-risk end of the infrastructure asset spectrum
  • Long-term cash returns of RPI+2-5% (i.e. as a liability match)

Pensions Infrastructure Platform Limited (PiP Limited) will continue to facilitate the development of the PiP. PiP Limited is a company limited by guarantee, which is presently wholly owned by National Association of Pension Funds Limited (NAPF Ltd).

Pensions Infrastructure Platform Limited is an appointed representative of Hutchinson Lilley Investments LLP which is authorised and regulated by the Financial Conduct Authority.


Aviva Investors Global Services Limited
St. Helen’s, 1 Undershaft, London EC3P 3DQ
Phone +44 (0)20 7809 6000
Fax +44 (0)20 7489 7940

Web www.avivainvestors.com   
Email info@avivainvestors.com

Pensions Infrastructure Platform (PiP)
Cheapside House, 138 Cheapside, London, EC2V 6AE
Telephone: 020 7601 1745
Web:  www.pipfunds.co.uk
Email: mike.weston@pipltd.org.uk