Pension Protection Fund, London, is searching for up to eight infrastructure managers to run an undisclosed amount, said Colin McAlpine, contracts manager at the U.K. pension insurer.
These are the £4 billion ($6 billion) fund's first infrastructure investments. Global and regional infrastructure fund managers will be considered to run public or private debt or unlisted equity investments. Hires, which may be spread over the next four years, will only be made if fund officials find opportunities that are sufficiently attractive and appropriate for the fund, Mr. McAlpine said.
In March, the fund set new guidelines that would decrease equity investments to 10% of total assets from 20%, and increase alternative assets to 20% from 10%.
Ian McKinlay, chief investment officer, said the exact allocations to infrastructure, private equity and hedge funds have not been set because fund officials want flexibility as they move opportunistically into these new asset classes.
Funding for infrastructure will come either from new cash flows or by reducing global equity managers' mandates, Mr. McKinlay said.
Interested infrastructure managers should submit a pre-qualification questionnaire to the fund by April 16. Evaluations will take place in the second quarter, with selections expected in the second half of this year, Mr. McAlpine said. Further information is available by sending an e-mail to [email protected]