GLIL Website Disclaimer

Important Information

Please read this disclaimer fully and carefully before proceeding, as it explains certain restrictions on access to the proceeding section of this website and the distribution and use of the information and data contained therein. You are not authorised to access the proceeding section of the website until you have acknowledged and agreed to the confirmations at the bottom of this disclaimer.

The content (including but not limited to all information and data) contained in this section of the website is published by GLIL Infrastructure LLP (GLIL) and is provided on GLIL's behalf by LPPI, which is authorised and regulated by the Financial Conduct Authority (FCA). 

This section of the website is not intended for the general public. Its content is directed at and published for persons who are defined as Professional Clients under the rules of the FCA, and specifically a UK pension scheme or the professional financial advisor to such a scheme. The services provided by GLIL are only available to persons classified as Professional Clients.

The contents of this website are only directed at Professional Clients in the UK reasonably believed to be of a kind to whom such promotions may be communicated.

This website and its contents is for information purposes only. Nothing contained in this website shall be construed as an offer, or solicitation of an offer to buy or sell any securities or other financial instruments. Shares of the investment funds described herein are offered solely on the basis of the information and representations expressly set forth in the relevant offering circulars, and no other information or representations may be relied upon in connection with the offering of the shares. The value of investments, and the income from them, can go down as well as up and you may get back less than you invested.

Nothing contained in this website constitutes investment, legal, tax or any other advice nor should any of the information or contents be relied on in making an investment or any other decision. You should obtain appropriate independent professional advice before making any investment decision.

Deny and return home

GLIL survey: Pension fund leaders plan infrastructure investment drive to support communities and fuel UK economy

30 April 2024

Research from GLIL Infrastructure shows:

  • Almost two-thirds (65%[i]) of pension fund leaders surveyed expect to increase investment in UK infrastructure during the next 12 months.
  • Pensions fund leaders surveyed say supporting the UK economy (39%), the government’s focus on infrastructure investment (37%) and supporting local communities (34%) are the main incentives for investment.
  • However, ongoing economic instability (23%) is cited as the biggest challenge when it comes to investing over the next year.
  • 70%[ii] of pension fund leaders surveyed believe infrastructure investment should prioritise the energy transition, with 96%[iii] saying they will be focusing investments on infrastructure in areas such as battery storage, hydrogen, and carbon capture usage and storage.

Almost two-thirds (65%i) of UK pension fund leaders surveyed are expecting to increase their investment in UK infrastructure during the next 12 months, according to the latest research from GLIL Infrastructure (“GLIL”).

The survey polled 300 local government, defined contribution and defined benefit pension fund leaders in the UK. When asked about the main drivers of their plans to invest in UK infrastructure – over and above their fiduciary responsibility to members – supporting the UK economy was the top response, cited by nearly two in five respondents (39%).

The government’s focus on infrastructure investment (37%) and supporting local communities (34%) were the next most popular incentives for investment in the asset class.

Leaders also highlighted the challenges to increasing their exposure to UK infrastructure in the next year. Almost a quarter (23%) said ongoing economic instability was the biggest obstacle, while 22% cited the need to keep sustainability at the core of investment pipelines, in order to support the UK’s net zero ambitions, as the main challenge.

Ted Frith, Chief Operating Officer at GLIL Infrastructure, said: “It’s encouraging to see so many pension fund leaders planning to allocate further patient capital to investing in UK infrastructure. This is needed to finance more projects and help power the UK’s transition to a sustainable net zero economy.

“The last decade has seen significant inflows into the asset class in the UK from both domestic and overseas pension funds. However, more recently, other jurisdictions have been winning the competition for capital investment as the UK has been seen as a less attractive place to invest. Those in positions of influence should take note of our survey findings and work to address the perceived deficiencies in the UK marketplace, such as long delays due to planning applications, which are getting in the way of delivering the infrastructure upgrades the UK needs.

“While pension funds gain access to reliable, inflation-linked returns, infrastructure investing can also be a force for social good, supporting local communities through jobs, education and regeneration projects, as well as helping to drive the economy forwards.”

 

Leaders show green ambitions

Pension fund leaders surveyed by GLIL were also asked about infrastructure investment in relation to supporting the UK’s net zero targets.

More than two-thirds (70%ii) agreed that investment should prioritise the energy transition, with as many as 96%iii saying they will be focusing investments on infrastructure in related areas, such as battery storage, hydrogen, and carbon capture usage and storage.

Ted Frith added: “Pension funds recognise that they are stewards of the assets and custodians of the future, with the responsibility to ensure their infrastructure investments will help decarbonise industries and contribute to the transition to a net zero economy.”

GLIL is a partnership of UK pension funds specially designed to help pension fund members tap into the stable, inflation-linked returns that infrastructure investment offers. GLIL manages £3.6 billion of committed capital, with more than £3 billion deployed into a growing portfolio of infrastructure assets spanning renewable energy, battery storage, regulated utilities, ports and logistics, trains, hospitals and schools. GLIL’s latest investments include a portfolio of 247MW of operational UK solar assets as well as a significant minority stake in the UK’s largest telecom tower business.

Survey methodology

  • The survey was conducted by Censuswide on behalf of GLIL Infrastructure using a sample of 300 C-suite or Director level+ UK pension scheme leaders (aged 18+) across LGPS and private DC and DB schemes.
  • Fieldwork was undertaken between 25-30 January 2024. Censuswide abides by and employs members of the Market Research Society which is based on the ESOMAR principles.

 

[i] Significantly increase’ and ‘Slightly increase’ responses combined

[ii] Strongly agree’ and ‘Somewhat agree’ responses combined

[iii] To a great extent’, ‘To some extent’, and ‘Very little’ responses combined