Updated with correction
The £5 billion ($8.2 billion) Merseyside Pension Fund, Liverpool, England, is allocating £20 million to AMP Capital's Strategic Infrastructure Trust of Europe, said Peter Wallach, head of pensions.
The investment will be funded by trimming an internally managed active U.K. equities portfolio that accounted for about 5% of the fund's total assets, Mr. Wallach said. The fund's target allocation to infrastructure is 2% of total assets.
“Potential inflationary pressures” have led the fund to invest in infrastructure and other real assets, he added. No consultants were involved in the search.