Greater Gwent Pension to invest £80m annually into infrastructure and real estate

The Greater Gwent Pension Fund is planning to invest up to £80m (€93.6m) per annum over the next three years across infrastructure and real estate to help reach its long-term target allocations to the asset classes.

The £4bn local authority pension scheme for staff in South Wales said it also agreed to a new impact policy last month that seeks opportunities to invest in UK-based carbon net zero and other projects promoting long-term social and economic benefits.

IPE Real Assets understands that Greater Gwent Pension Fund is targeting an investment of up to 2% of total assets per annum over the next three years to help reach its long-term asset allocations of 12% to infrastructure and 8% to real estate.

Chair of the Greater Gwent Pension Fund, councilor Nathan Yeowell, said: “This policy will support greater growth in the UK economy and, where possible, we will look to make these investments into Welsh projects. At a time of slow economic growth, we want to invest in medium-to-long-term economic, environmental and social priorities.

“The fund has made several major investments that have started providing or will provide tangible benefits to society, through the creation of local jobs, investment in local communities and by delivering sound financial returns for members living in Gwent.

“We have already made several significant fund commitments including innovative renewable energy projects in Newport and Blaenau Gwent, with others across North Wales in the pipeline. The investment at the Uskmouth site, in particular, will contribute to national energy security goals and carbon reduction, while creating skilled local jobs and growth in the local economy.”

Greater Gwent Pension Fund has made investment commitments of approximately £150m to impact-focused investments to date, which are in various stages of deployment, with an initial commitment made in June 2020. 

The pension fund’s previous investments include a £50m commitment to Quinbrook Renewables Impact Fund, a £70m investment in Gresham House British Strategic Infrastructure funds I and II, and a £10m commitment to the Wales Pension Partnership in collaboration with Capital Dynamics to invest into a portfolio of onshore wind projects in Wales.

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