Pension funds are not the solution to the problem of under-investment in infrastructure, a senior pensions expert told the Association for Consultancy and Engineering centenary conference last week.
Pension Protection Fund chief executive Alan Rubenstein warned against seeing the Pensions Infrastructure Platform (PIP) as a panacea to the funding problem. The PIP aims to bring together pension funds to create greater investment power and has a target size of £2bn.
Rubenstein said that at present the PIP had a group of 10 large pension funds, which were “blazing a trail” and had committed £1bn of their own funds for investment in UK infrastructure.
This £1bn would leverage £2bn of equity, which in turn could give £4bn of “fire power”, he said.
“Personally I want things done yesterday and I would like to be moving faster,” Rubenstein said.
However, he added: “PIP is not a panacea and it was never meant to be.”